(i) Rights, preferences and restrictions attached to equity shares:

The Company has only one class of equity shares having a par value of ' 10 per share. Accordingly, all equity shares rank equally with regard to dividend and share in the Company's residual assets on winding up. The equity shares are entitled to receive dividend as declared and approved from time to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to his/its share of the paid-up equity share capital of the Company.

(ii) Fresh issue of equity shares in qualified institutional placement (QIP):

Pursuant to the provisions of the Securities Contracts (Regulation) Rules, 1957 (SCRR), the Company is required to achieve at least 25.00% public shareholding within three years from the date of listing of its equity shares on the stock exchanges in the manner as specified under the SCRR and other applicable laws.

During the year ended 31 March 2024, the Company has completed fresh issue of equity shares vide qualified institutional placement (QIP), towards meeting the compliance in accordance with SCRR. The offer comprises of 1,226,993 equity shares of the face value of ' 10/- each at an issue price of ' 1,630/- per equity share (including a premium of ' 1,620 per equity share) aggregating to ' 2,000.00 million. The equity shares of the Company were allotted on 29 August 2023 vide board resolution dated 29 August 2023. These equity shares of the Company were listed on 30 August 2023 on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE).

(iii) Dividend

For the year ended 31 March 2023, the Board of Directors has recommended final dividend of 20% (' 2/- per equity share of face value ' 10 each) vide board resolution dated 05 May 2023 (refer note 48), which has been passed as ordinary resolution by the shareholders in AGM held on 22 September 2023.

(iv) Aggregate number and class of shares allotted as fully paid-up pursuant to any contract(s) without payment being received in cash or by way of bonus share or shares bought back during the period of five years immediately preceding the reporting date:

(a) The Company has not allotted any fully paid-up equity shares pursuant to any contract without payment being received in cash.

(b) During the year ended 31 March 2021, the Company has allotted 12,052,500 numbers of equity shares of the face value of '10 each by way of bonus share in the ratio of 1.5:1 vide Board resolution dated 31 December 2020, which has been passed as special resolution by the shareholders in EOGM held on 27 January 2021.

(c) The Company has not bought back any fully paid-up equity shares.

(i) Refer note 43 and 44 for financial instruments - fair values and risk measurement respectively.

(ii) The Company has not defaulted on repayment of principal and interest of any loan availed from any banks or financial institutions. The tenure of repayment of any loan availed by the Company from banks or financial institutions has not been rescheduled. The Company has not breached any covenants, terms and conditions of any loan agreement or any facility agreement.

(iii) The Company has utilised the borrowings from banks for the specific purpose for which it was taken.

(iv) The Company does not have any charges or satisfaction which are yet to be registered with Registrar of Companies (ROC) beyond statutory period.

(v) Refer note 51 for the additional regulatory information.

(vi) During the year ended 31 March 2023, the personal guarantees of promoters cum directors of the Company i.e. Mr. Ajaykumar Mansukhlal Patel, Mr. Chintan Nitinkumar Shah and Mr. Shekhar Rasiklal Somani have been released. Earlier these personal guarantees were issued towards contractual obligations in respect of loans availed by the Company.

(viii) Nature of securities are as follows:

Foreign currency term loans - II, III, X and working capital facilities from ICICI Bank Limited have been secured by way of first pari-passu charge on immovable and movable fixed assets of Dahej SEZ unit and movable fixed assets of Ankleshwar unit of the Company. Further, secured by pari-passu charge on current assets (except Vadodara unit) of the Company. Further secured by way of lien on fixed deposit of ' 5.15 million till 31 March 2023.

Foreign currency term loans - VI, VII, VIII, IX and working capital facilities from CITI Bank N.A. have been secured by way of first pari-passu charge on immovable and movable fixed assets of Dahej SEZ unit and movable fixed assets of Ankleshwar unit and exclusive charge on immovable and movable fixed assets of Vadodara unit of the Company. Further, secured by pari-passu charge on current assets of the Company.

Working capital facilities from State Bank of India have been secured by way of first pari-passu charge on immovable and movable fixed assets of Dahej SEZ unit and movable fixed assets of Ankleshwar unit of the Company. Further, secured by pari-passu charge on current assets (except Vadodara unit) of the Company.

Working capital facilities from DBS Bank Limited have been secured by way of first pari-passu charge on immovable fixed assets of Dahej SEZ unit and movable fixed assets of the Company. Further, secured by pari-passu charge on current assets (except Vadodara unit) of the Company.

Three vehicle loans from Axis Bank Limited have been secured by way of hypothecation of respective vehicles and personal guarantees of promoters cum directors of the Company.

(i) Section 115BAA in the Income Tax Act, 1961 provides an option to the Company for paying income tax at reduced rates as per the provisions or conditions defined in the said section. The Company has opted to provide and consider the payment of income tax under old tax regime and deferred tax assets and liabilities are measured at the rates at which such deferred tax assets or liabilities are expected to be realised or settled.

(ii) The Company is required to compute tax payable, higher of:

(a) Tax computed as per normal provisions of Income Tax Act, 1961 or

(b) Tax payable as per MAT provisions computed u/s 115JB of Income Tax Act, 1961.

When the amount of minimum alternate tax (MAT) is greater than its normal tax liability, the difference between MAT and normal tax liability is recognised as assets "MAT credit entitlement".

(iii) The Company has accrued significant amounts of deferred tax. The majority of the deferred tax (assets)/liability represents:

1. Taxable temporary differences:

(a) Accelerated tax relief for the depreciation on property, plant and equipment

2. Deductible temporary differences:

(a) Unused minimum alternate tax (MAT) credit carried forward,

(b) Net disallowances under income tax includes:

(i) Other long-term employee benefits (compensated absences),

(ii) Forward exchange contracts (not designated as hedge), and

(iii) Defined benefit obligation-gratuity fund

(c) Unabsorbed business losses,

(d) Share issue expenses

(ii) The Company continues to pay income tax under older tax regime and has not opted for lower tax rate as per provisions of section 115BAA of the Income Tax Act, 1961. The Company is computing current tax on the basis of tax laws that have been enacted.

(iii) Refer note 23 for deferred tax and current tax (assets)/liabilities (net).

(iv) The Company is eligible for specified tax incentives which is included in the table above as tax holidays or exemptions. These are briefly described as under:

a) Location based exemption - Special economic zone (SEZ) operations:

The Dahej unit of the Company located in Dahej SEZ, Bharuch, Gujarat, India enjoy certain benefits under section 10AA of the Income Tax Act, 1961, which allows 100% of the taxable profit (derived from the export turnover from a SEZ unit) to be exempted till 31 March 2022, provided certain conditions are met.

Subsequent to this date, 50% of the taxable profit will be allowed to be exempted till 31 March 2027.

Subsequent to 31 March 2027, 50% of the taxable profits will be allowed to be exempted for further five years, provided the amount allowable in respect of deduction is credited to Special Economic Zone Re-Investment Reserve account and the amount credited should be utilised for acquiring new plant and machinery and provided certain other conditions are met. There can be no assurance that the Company will continue to enjoy the tax benefits under section 10AA of the Income Tax Act, 1961 in future.

32 Tax expense/(benefits) (Continued)

b) Other exemption - Research and development (R&D) operations:

The R&D unit of the Company located at Vadodara, Gujarat, India enjoys certain benefits under section 35(2AB) of the Income Tax Act, 1961, which allows 150% deduction of any expenditure on scientific research (not being expenditure in the nature of cost of any land or building) on in-house research and development facility as approved by the prescribed authority, provided certain conditions stipulated by Department of Scientific and Industrial Research ("DSIR") are met, up to 31 March 2020.

Subsequent to this date, 100% of any expenditure as specified above will be allowed as deduction.

Approval of DSIR to the in-house R&D unit was valid till 31 March 2024 and application for extention till 31 March 2027 is under approval. However, for subsequent period, deduction will be subject to approval of DSIR for the recognition of inhouse R&D for respective period.

(v) The Company has established a comprehensive system of maintenance of information and documents as required by transfer pricing legislation for its international transactions as well as specified domestic transactions. Management believes that all the above transactions are at arm's length price and the aforesaid legislations will not have any impact on the standalone financial statement, particularly on the amount of tax expense and provision for taxation.

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

(i) During the years ended, the Company has presented earnings per equity share for continuing operations attributable to the ordinary equity shareholders of the Company. The Company does not have any discontinued operations.

The Company has only one class of equity shares having a par value of ' 10 per share. Accordingly, all equity shares rank equally with regard to their right to share profit for the year.

34 Earnings per equity share (EPS) (Continued)

The Company does not have any instruments (including contingently issuable shares) that could potentially dilute earnings per equity share in the future.

(ii) The earnings per equity share is computed by dividing the net profit after tax attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting year.

(iii) Weighted average number of equity shares is the number of equity shares outstanding at the beginning of the year adjusted by the number of equity shares issued or allotted during the year, multiplied by the time weighting factor. The time weighting factor is the number of days for which the specific shares are outstanding as a proportion of total number of days during the year.

(iv) During the year ended 31 March 2024, the Company has completed fresh issue of equity shares vide qualified institutional placement (QIP). The offer comprises of 1,226,993 equity shares of the face value of ' 10/- each at an issue price of ' 1,630/- per equity share (including a premium of ' 1,620 per equity share) aggregating to ' 2,000.00 million. The equity shares of the Company were allotted on 29 August 2023 vide board resolution dated 29 August 2023. The equity shares of the Company were listed on 30 August 2023 on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE).

35 Revenue from contract with customers

Revenue from sale of products is recognized when the control on the goods has been transferred to the customers. Revenue from sale of services is recognised on satisfaction of performance obligation towards rendering of such services. The performance obligation in case of sale of product is satisfied at a point in time i.e., when the material is shipped to the customer or on delivery to the customer, as may be specified in the contract.

"Specialty chemical business" has been identified as single operating segment for the purpose of making decision on allocation of resources and assessing its performance.

Although to meet the disclosure objective with respect to disaggregation of revenue under "Ind AS 115 Revenue from contract with Customers" the Company believes that disaggregation on the basis of "product categories" best depicts how the nature, amount, timing and uncertainty of its revenues and cash flows are affected by industry, market and other economic factors.

(i) Amounts received in advance from customers i.e. before the related performance obligation is satisfied, are included in the balance sheet as "Advances received from customers" (Contract liability) in "Other current liabilities". Amounts invoiced or billed for performance obligation satisfied but not yet paid by the customers are included in the balance sheet as "Trade receivables" (Contract assets).

(ii) There were no significant changes in the composition of the contract liabilities and contract assets during the years reported, other than on account of routine invoicing, revenue recognition and customer advances.

(iii) Amounts previously recorded as contract liabilities have been increased due to further advances received from customers during the years and decreased due to revenue recognised on satisfaction of performance obligation during the years.

(iv) Amounts previously recorded as trade receivables have been increased due to revenue recognised on satisfaction of performance obligation during the years and decreased on account of amount received from customers during the years.

(v) As per the terms of the contract with customers, either all performance obligations are to be completed within one year from the date of such contracts or the Company has a right to receive consideration from its customers for all completed performance

35 Revenue from contract with customers (Continued)

obligations. Accordingly, the Company has availed the practical expedient available as per paragraph 121 of Ind AS 115 and dispensed with the additional disclosures with respect to performance obligations that remained unsatisfied (or partially unsatisfied) at the balance sheet date. Further, since the terms of the contracts directly identify the transaction price for each of the completed performance obligations, in all material respects, all the elements of transaction price have been included in the revenue recognised in the standalone financial statements. Further, there is no material difference between the contract price and the revenue from contract with customers.

(vi) As per the terms of the contract with customers, the Company expects, at the contract inception, that the period between transfer of a promised goods or services to customer and related payments for the goods or services will be less than one year or less. Accordingly, the Company has availed the practical expedient available as per paragraph 63 of Ind AS 115 and has not adjusted the promised amount of consideration for the effects of significant financing component, if any.

(iv) During the years ended, the Company has received, all due trade receivable from both the overseas wholly owned subsidiaries and from other overseas non-related parties within 60 days of its falling due or as prescribed by Reserve Bank of India from time to time.

38 Leases

Company as lessee:

Short-term leases: The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases of all assets that have a lease term of 12 months or less (short-term lease), leases of low-value assets and cancellable leases. The Company recognizes the lease payments associated with these leases as an expense in the standalone statement of profit and loss.

The Company has taken "leasehold land" on long-term lease, these leases are entirely prepaid by the Company and does not have any future lease liability towards the same. (refer note 4)

40 Employee benefits

Employee benefits of the Company includes all forms of consideration (directly or indirectly) given by the Company in exchange for services rendered by its employees or on termination of employment.

A Short-term employee benefits:

Measurement and recognition:

The Company measures short-term employee benefits on an undiscounted basis and it does not involve any actuarial valuation on the same.

The Company has recognised short-term employee benefits expected to be paid:

a) as employee benefits expense in the standalone statement of profit and loss, if it does not form part of the cost of an asset as per any other Ind AS (Ind AS 2 "Inventories" or Ind AS 16 "Property, plant and equipment") (refer note 28), and

b) as a current liability (employee benefits payable) or as a current asset (accrued expense) in the standalone balance sheet, after deducting any amount already paid. (refer note 20)

B Post-employment benefits:

1 Defined contribution plans:

a) Description of plan:

The Company makes defined contribution to the recognised employee provident fund (EPF) as per provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and to employee state insurance corporation (ESIC) as per provisions of the Employees' State Insurance Act, 1948 for qualifying employees, which are recognised as employee benefits expense in the standalone statement of profit and loss, on accrual basis when an employee renders the related service. The Company does not have any further contractual or constructive obligation, other than the contribution payable to the provident fund.

b) Measurement and recognition:

Under these contributions, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the provisions and rules of the related laws.

2 Defined benefit plans: i) Gratuity (funded):

a) Description of plan:

The Company makes annual contributions to defined benefit gratuity plan (funded) to finance the plan liability for qualifying employees. The gratuity fund is separately managed and administered by a trust (approved under the Income tax Act, 1961) and is legally separate from the Company. The plan is funded with Life Insurance Corporation of India (LIC) in the form of qualified insurance policy. The contribution towards the trust fund is done as per rule 103 of Income Tax Rules, 1962. The provisions of plan in accordance with the Payment of Gratuity Act, 1972 are as follows:

The eligible employees are entitled to post-retirement benefit at the rate of 15 days last drawn salary (monthly salary is calculated for 26 days) for each completed year of service until the retirement age of 58 years, subject to ceiling of ' 2 million:

(i) On termination of employment due to superannuation or early retirement or resignation: with vesting period of 5 years of service.

(ii) On death or permanent disablement in service: without any vesting period.

Where employees leave the Company prior to full vesting of the contributions, the contribution payable by the Company is reduced by the amount of forfeited contributions.

Governance of plan:

The fund is managed by a trust which is governed by the Board of trustees. The Board of trustees are responsible for the administration, for overall governance of the plan assets, for the definition of the investment strategy and to act in accordance with the provisions of the trust deed and rules in the best interests of the plan participants. They do periodic reviews of the solvency of the fund and play a role in the long-term investment, risk management and funding strategy.

Investment strategy:

The investment strategy in respect of its funded plans is implemented within the framework of the applicable statutory requirements. The plan exposes the Company to various actuarial risks such as:

(i) Interest rate risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan's debt investments.

(ii) Salary inflation risk: The present value of the defined benefit 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.

(iii) Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to market yields at the end of the reporting period on government bond yields; if the return on plan asset is below this rate, it will create a plan deficit. Currently, the plan has a relatively balanced investment in government securities and other debt instruments.

(iv) Asset liability matching (ALM) risk: The plan faces the ALM risk, as to the matching cash flows. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

(v) Longevity (mortality) risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.

(vi) Concentration risk: The plan is having a concentration risk, as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very low as insurance companies have to follow stringent regulatory guidelines which mitigate risk.

b) Measurement and recognition:

The present value of the defined benefit obligation and the related current service cost and past service cost is determined based on actuarial valuation as at the reporting date and is measured using the "projected unit credit method", which recognizes each period of service as giving rise to additional units of employees benefit entitlement and measures each unit separately to build-up the final obligation.

The obligations are measured at the present value of the estimated future cash flows by applying various valuation assumptions (referred below). The discount rate used for determining the present value of the obligation is based on the market yields on Government bonds as at the date of actuarial valuation.

For the purpose of calculation, past service is rounded to the nearest integer. Suitable application of the ' 2 million ceiling has been considered while conducting the valuation and during the years ended, there were no plan amendments, curtailments and settlements.

The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out at 31 March 2024 and this valuation has been done in conformity with the Actuarial Practice Standard 27 (APS 27) and the relevant guidance notes issued by Institute of Actuaries of India.

The Company has recognised actuarial gains or losses (net of tax) immediately in the other comprehensive income (OCI).

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below has been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation, as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation recognised in the standalone balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

Each year an asset liability matching study is performed in which the consequences of the strategic investment policies are analysed in terms of risk and return profiles. Investment and contribution policies are integrated within this study.

C Other long-term employee benefits: i) Compensated absences (non-funded): a) Description of plan:

The plan is non-funded and non-contributory defined benefits and cover the Company's liability for privilege leave. Under the compensated absences plan, leave encashment is payable to eligible employees on separation from the Company due to death, retirement, superannuation or resignation, at the rate of daily last drawn salary (monthly salary is calculated for 26 days), as per current accumulation of leave days. Other provisions of the plan are:

Accumulating paid absences may be either vesting (in other words, employees are entitled to a cash payment for unused entitlement on superannuation or resignation or retirement) or non-vesting (when employees are not entitled to a cash payment for unused entitlement on superannuation or resignation or retirement). An obligation arises, when employees render service that increases their entitlement to future paid absences. The obligation exists and is recognised, even if the paid absences are nonvesting, although the possibility that employees may leave before they use an accumulated non-vesting entitlement affects the measurement of that obligation.

b) Measurement and recognition:

The present value of the other long-term employee benefit and the related current service cost and past service cost is determined based on actuarial valuation as at the reporting date and is measured using the "projected unit credit method", which recognizes each period of service as giving rise to additional units of employees benefit entitlement and measures each unit separately to build-up the final obligation.

The obligations are measured at the present value of the estimated future cash flows by applying various valuation assumptions (referred below). The discount rate used for determining the present value of the obligation is based on the market yields on Government bonds as at the date of actuarial valuation.

Based on the Company's past experience, the leave balances are split up into three proportions; leaves for while in service availment, leaves for while in service encashment and leaves for encashment on exit. This proportion is considered to follow the last in first out (LIFO) approach as guided in the Ind AS 19. During the years ended, there were no plan amendments, curtailments and settlements.

The most recent actuarial valuation of the present value of the other long-term employee benefits were carried out at 31 March 2024 and this valuation has been done in conformity with the Actuarial Practice Standard 27 (APS 27) and the relevant guidance notes issued by Institute of Actuaries of India.

The principal assumptions used for the purposes of actuarial valuation of other long-term employee benefits are same assumptions that are used in actuarial valuation of defined benefit plan (gratuity) (referred above), except two additional demographic assumptions which were as follows:

Significant actuarial assumptions for the determination of the other long-term benefits obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below has been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the other long-term employee benefits obligation, as it is unlikely that the change in assumptions would occur in isolation of one another, as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the other long-term benefits obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation recognised in the standalone balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

D Termination benefits:

Measurement and recognition:

The Company measures termination benefits on initial recognition and will further measure and recognise subsequent changes, in accordance with the nature of employee benefits, provided that:

- if the termination benefits are an enhancement of post-employment benefits, then the Company will apply all the requirements of post-employment benefits,

- if the termination benefits are expected to be settled wholly before 12 months after the end of reporting period, then the Company will apply all the requirements of short-term employee benefits, and

- if the termination benefits are not expected to be settled wholly before 12 months after the end of reporting period, then the Company will apply all the requirements of long-term employee benefits.

The Company has recognised termination benefits expected to be paid:

a) as employee benefits expense in the standalone statement of profit and loss, and

b) as a current liability (employee benefits payable) or as a current asset (accrued expense) in the standalone balance sheet, after deducting any amount already paid.

41 Segment reporting

"Operating segments" are components of the Company whose operating results are regularly reviewed by the "Chief Operating Decision Maker (CODM)" to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available.

"Specialty chemical business" has been identified as single operating segment for the purpose of making decision on allocation of resources and assessing its performance.

B Transactions with related parties:

The Company's related parties primarily consist of its wholly owned subsidiaries and all the contracts or arrangements or transactions entered into by the Company with the related parties were in the ordinary course of business and on arm's length basis and were in compliance with the provisions of the Companies Act and Listing Regulations and are approved by Audit committee.

The terms and conditions of the transactions with key management personnel and their relatives were not favourable than those transaction available or those transaction which might reasonably be expected to be available, in respect of similar transactions with non-key management personnel and their relatives on an arm's length basis.

(i) None of the Company's director is related to each other or to any other key managerial personnel.

(ii) The Company has not entered into any service contracts with its directors or key managerial personnel which include termination or retirement benefits. Except statutory benefits upon termination of their employment in the Company or superannuation or otherwise, none of the key managerial personnel is entitled to any benefits upon termination of employment or superannuation.

(iii) The Company does not have any contingent or deferred compensation payable to its directors or key managerial personnel which does not form part of their remuneration.

(iv) The Company does not have any profit-sharing plan in which its directors or key managerial personnel have participated.

(v) All the key managerial personnel (other than executive directors) are interested in the Company only to the extent of the remuneration or benefits to which they are entitled to as per their terms of appointment and reimbursement of expenses incurred by them during the ordinary course of their service.

(vi) All the key managerial personnel except its executive directors, are permanent employees of the Company.

(vii) The directors of the Company have not been paid any kind of remuneration from any of its subsidiaries.

43 Financial instruments

A Categories of financial assets and financial liabilities:

The Company's financial assets and financial liabilities can be categorised as follows:

(i) The Company has carried its investments in equity instruments of subsidiaries at deemed cost less provision for impairment, if any as per paragraph D15 of Ind AS 101 "First-time adoption of Indian accounting standards". The Company does not have any investment in equity instruments "designated" at FVTOCI.

(ii) All financial assets and financial liabilities of the Company are measured at "amortised cost" except current investments, which have been designated to be measured at "FVTPL".

(iii) The Company does not have any financial assets measured at FVTOCI.

(iv) During the years ended, the Company has not reclassified any financial assets and financial liabilities.

(v) During the years ended, the Company has not off-settled any financial assets and financial liabilities.

(vi) Refer note 15 for movement in loss allowance for credit losses of trade receivables.

(vii) The Company does not have any type of compound financial instruments.

(viii) Refer note 18 for security details of financial assets and for no default and breach related to borrowings.

(ix) The Company has disclosed carried amount, net gains or losses if any, interests' income and interest expenses of all the categories of financial assets and liabilities in respective notes forming part of standalone financial statements.

B Hedge accounting:

Derivatives not designated as hedging instruments: The Company uses foreign currency denominated borrowings and foreign exchange forward contract to manage its transaction exposures. The foreign exchange forward contracts are not designated as cash flow hedges and are entered into for periods consistent with foreign currency exposure of the underlying transactions, generally from 4 to 6 months.

The Company does not use cash flow hedges, fair value hedges, hedging of net investment in foreign operations and embedded derivatives.

C Fair values:

The Company's management have assessed that the "carrying amounts" of financial assets and liabilities other than those valued at Level 1 and Level 2 are considered to be reasonable approximation of their "fair values" due to their current and short-term nature. Accordingly, the Company has not separately disclosed fair values as per paragraph 29 of Ind AS 107 " Financial instruments: disclosures".

D Fair value hierarchy:

The fair value of financial instruments has been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

Level 1 quoted prices in an active market: This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of investment in quoted equity shares and mutual funds. It has been valued using the closing price as at the reporting period on the stock exchanges.

Level 2 valuation techniques with observable inputs: This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The fair value of these instruments is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 valuation techniques with significant unobservable inputs: This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair value is determined in whole or in part, using a

valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor based on available market data.

E Measurement of fair values:

The Company's management have used its best judgement in estimating the fair value of its financial instruments. When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

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 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.

44 Financial instruments-risk management

The Board of Directors has the overall responsibility for establishing and governing the Company's risk management framework. The Company has constituted a risk management committee, which is responsible for developing and monitoring the Company's risk management policies. The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions have also been placed before the Audit Committee of the Company. This note explains the nature, extent and sources of risks arising from financial instruments to which the Company is exposed at the end of the reporting years and how the entity manages the risk and the related impact in the standalone financial statements.

The Company's financial liabilities comprise mainly of borrowings, trade payables and other payables. The Company's financial assets comprise mainly of investments, cash and cash equivalents, other bank balances, loans, trade receivables and other receivables. The Company's business activities are exposed to a variety of financial risks namely:

A. Credit risk,

B. Liquidity risk and

C. Market risk

A Credit risk:

Credit risk refers to the risk that a counterparty will default on its contractual and performance obligations resulting in financial loss to the Company. Credit risk encompasses both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks.

Company's credit risks principally arise from trade receivables and other receivables, from investments, from cash and cash equivalents, from forward exchange contracts and from security deposits or other deposits. The maximum credit exposure associated with financial assets is equal to the carrying amount. Details of the credit risk specific to the Company along with relevant mitigation procedures adopted have been enumerated below:

Trade and other receivables:

Customer credit risk has been managed by the Company and is subject to established policy, procedures and controls relating to customer credit risk management by establishing credit limits, credit approvals and monitoring the credit worthiness of the customers to which the Company extends the credit in the normal course of the business. The Company uses publicly available financial information and its own trading records to rate its major customers. The Company's exposure and the credit ratings (if available) of its counterparties are continuously monitored. The outstanding trade receivables are regularly monitored and appropriate action has been taken for collection of overdue receivables.

Refer note 15, 35 and 41 for other disclosures related to trade receivables.

Other financial assets:

Other financial assets include investments, security deposits, forward exchange contracts, cash and cash equivalents, loans, other bank balance and other receivables.

• Investments in mutual funds are made only in large fund houses of good repute and credit worthiness.

• Security deposits have been given to various government authorities including other counterparties. Being government authorities, the Company believe that it does not has any exposure to credit risk. Security deposits to others are subject to established policy, procedures and controls relating to counterparty credit risk management by monitoring their credit worthiness, etc.

• Foreign exchange forward contracts (not designated as hedging instruments) have been taken with the intention of reducing foreign exchange risk of expected transactions. The Company attempts to limit the credit risk by only dealing with reputable banks having high credit-ratings assigned by credit-rating agencies.

• Cash and cash equivalents and fixed deposits are placed with banks having good reputation and having high credit-ratings assigned by international credit-rating agencies.

Refer note 8 to 12 for other disclosures related to other financial assets.

B Liquidity risk:

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company's approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions.

The Company has maintained a cautious liquidity strategy, with a positive cash balance throughout the years ended. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short-term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

The Company also manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Exposure to liquidity risk:

The following table shows the maturity analysis of the Company's financial liabilities based on contractually agreed undiscounted cash flows, along with its carrying value as at the balance sheet date. It includes principal, estimated interest payments and exclude the impact of netting agreements. The contractual maturity is based on the earliest date on which the Company may be required to pay.

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 the market prices. The Company is exposed in the ordinary course of its business to risks related to changes in foreign currency exchange rates and interest rates.

(i) 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 foreign exchange rates. The Company's functional currency is Indian Rupees (INR). The Company has exposure to foreign currency mainly by way of trade receivables, cash and cash equivalents, borrowings and trade payables (primarily USD and EUR) and is therefore exposed to foreign exchange risk. Volatility in exchange rates affects the Company's revenue from exports markets and the costs of imports, primarily in relation to exports with respect to the US-dollar. Adverse movements in the exchange rate between the Rupee and the relevant foreign currency results in increase in the Company's overall debt position in Rupee terms without the Company having incurred additional debt.

In order to minimize adverse effects on the financial performance, the Company has entered into foreign exchange forward contracts (not designated as hedging instruments) to hedge foreign currency exchange risk. All hedging activities are carried out in accordance with the Company's internal risk management policy, as approved by the Board, and in accordance with the applicable regulations where the Company operates. Such decisions are taken after considering many factors such as upside potential, cost of structure and the downside risks etc. Weekly reports are submitted to management on the covered and open positions and mark to market (MTM valuation).

(ii) Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. The Company's fixed rate borrowings are carried at amortised cost. Therefore, they are not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate.

The Company has exposure to variable interest rate risk, arising principally on changes in repo rate, MCLR, LIBOR and SOFR rates. The Company uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day-to-day operations like short-term loans. The Company manages this risk by maintaining an appropriate mix between fixed and floating rate borrowings. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied. The Company also has financial assets i.e. fixed deposits with fix rate of interest, therefore, they are not subject to interest rate risk.

45 Capital management

The primary objective of the Company's capital management is to ensure that it maintains a strong capital base so as to maintain investor, creditor and market confidence, to sustain future development of the business and to be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. For the purpose of the Company's capital management, capital includes paid-up equity capital and all other equity reserves attributable to the equity holders of the Company. The Company determines the amount of capital required on the basis of annual business plan coupled with long-term and short-term strategic investment and expansion plans. The funding needs are met through equity, cash generated from operations, longterm and short-term bank borrowings. The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

Notes:

(i) The Company does not have any classes of liabilities which have been identified as provisions as per Ind AS 37 "Provisions, Contingent liabilities and contingent assets" except provisions covered under Ind AS 109, Ind AS 19 and Ind AS 12.

(ii) Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above, as it is determinable only on receipt of judgments or decisions pending with various forums or authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its standalone financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial position.

(iii) Indirect tax matters:

(a) The Company has received show cause cum demand notice dated 29 March 2022 from Deputy Director General of GST Intelligence (DGGI), for recovery of erroneous refund on zero rated supplies under Integrated Goods and Service Tax Act, 2017 (IGST) amounting to ' 11.38 million pertaining to financial year 2017-18 and 2018-19, apart from interest and penalty under section 74 (1) of The Central Goods and Service Tax Act, 2017 (CGST) r.w. regulation 20 of IGST Act, 2017. The Company has filed application against the same. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial position.

(b) The Company has received order dated 3 March 2021 from Superintendent, CGST for recovery of erroneous refund on zero rated supplies under IGST Act, 2017 amounting to ' 0.56 million pertaining to financial year 2017-18, apart from interest and penalty. The Company has filed appeal against the same. The Company expects the outcome of this proceeding in its favour.

(iv) Direct tax matters:

The Company has received show cause notice dated 22 September 2022 from Income tax assessment unit under section 274 read with section 270A of the Income Tax Act, 1961 amounting to ' 1.00 million pertaining to assessment year 2020-21 (financial year 2019-20). The Company has filed appeal against the same. The Company expects the outcome of this proceeding in its favour.

47 Other disputed matters

The Company has filed two criminal complaints against M/s Kaveri Engineering Works ("Accused"), before the Chief Judicial Magistrate under the provisions of sections 138 and 141 of the Negotiable Instruments Act, 1881, wherein it is alleged that two cheques amounting ' 0.78 million was issued by the Accused to the Company (in respect of certain advance payments made to the Accused, that was to be reimbursed to the Company, in light of the failure of the Accused to deliver certain goods to the Company) was subsequently dishonoured. The matter is currently pending and the Company expects the outcome of this proceeding in its favour.

48 Subsequent events

In preparing these standalone financial statements, the Company has evaluated events and transactions that occur during the period subsequent to 31 March 2024 for potential recognition or disclosure in the standalone financial statements. These subsequent events have been considered through 03 May 2024, which is the date, the standalone financial statements were available to be issued. Except proposed dividend, no significant items were identified, which may require an adjustment to the standalone financial statements.

The Board of Directors has recommended a final dividend of 20% (' 2/- per equity share of face value ' 10 each) for the financial year ended 31 March 2024, which is subject to the approval of shareholders at the ensuing Annual General Meeting. If approved, the dividend would result in a cash outflow of approximately ' 46.78 million for financial year ended 31 March 2024 (31 March 2023: ' 44.33 million).

49 Statement of utilization of initial public offer (IPO) proceeds

A During the year ended 31 March 2022, the Company has completed initial public offer (IPO) of 4,616,804 equity shares of the face value of ' 10/- each at an issue price of ' 1,083/- per equity share (including a premium of ' 1,073 per equity share) aggregating to ' 5,000.00 million. The offer comprises of a fresh issue of 2,077,562 equity shares aggregating to ' 2,250.00 million and an offer for sale of 2,539,242 equity shares aggregating to ' 2,750.00 million. The equity shares of the Company were allotted on 27 July 2021 vide board resolution dated 27 July 2021. The equity shares of the Company were listed on 29 July 2021 on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE).

(ii) The Company has obtained a monitoring agency report on quarterly basis from the "Monitoring agency" and filed the same with both BSE Limited (BSE) and National Stock Exchange of India Limited (NSE) where equity shares of the Company are listed and uploaded the same on Company's website.

(iii) The above statement of utilization of IPO proceeds has been reviewed by the Audit Committee and approved by the Board of directors at their meeting held on 03 May 2024.

(iv) During the year ended 31 March 2024, the Company has utilised full amount of IPO proceeds as per "objects of the offer".

(v) In accordance with section 27 of the Companies Act, 2013, the Company has not used the net proceeds for buying, trading or otherwise dealing in shares of any other listed company.

(vi) The Company has not entered in any proposal whereby any portion of the net proceeds will be paid to the promoters, promoter group, directors, key managerial personnel, or senior management personnel, except in the ordinary course of business. Further, there are no existing or anticipated transactions in relation to the utilisation of the net proceeds entered into or to be entered into by the Company with the promoters, promoter group, directors, key managerial personnel and/or senior management personnel.

50 Statement of utilization of qualified institutional placement (QIP) proceeds

A During the year ended 31 March 2024, the Company has completed fresh issue of equity shares vide qualified institutional placement (QIP). The offer comprises of 1,226,993 equity shares of the face value of ' 10/- each at an issue price of ' 1,630/- per equity share (including a premium of ' 1,620 per equity share) aggregating to ' 2,000.00 million. The equity shares of the Company were allotted on 29 August 2023 vide board resolution dated 29 August 2023. The equity shares of the Company were listed on 30 August 2023 on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE).

(i) The Company has appointed Crisil Ratings Limited as the "Monitoring agency" in terms of regulation 41(2) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, to monitor the utilization of QIP proceeds.

(ii) The Company has obtained a monitoring agency report on quarterly basis from the "Monitoring agency" and filed the same with both BSE Limited (BSE) and National Stock Exchange of India Limited (NSE) where equity shares of the Company are listed and uploaded the same on Company's website.

(iii) The above statement of utilization of QIP proceeds has been reviewed by the Audit Committee and approved by the Board of directors at their respective meetings held during the year ended 31 March 2024.

(iv) During the year ended 31 March 2024, the Company has utilised full amount of QIP proceeds as per "objects of the offer".

(v) In accordance with section 27 of the Companies Act, 2013, the Company has not used the net proceeds for buying, trading or otherwise dealing in shares of any other listed company.

(vi) The Company has not entered in any proposal whereby any portion of the net proceeds will be paid to the promoters, promoter group, directors, key managerial personnel, or senior management personnel, except in the ordinary course of business. Further, there are no existing or anticipated transactions in relation to the utilisation of the net proceeds entered into or to be entered into by the Company with the promoters, promoter group, directors, key managerial personnel and/or senior management personnel.

(vii) Net proceeds have been revised from ' 1,942.50 million to ' 1,943.45 million. The actual cost incurred by the Company towards offer related expenses was less than the estimated cost disclosed in the offer document. Accordingly, the amount of ' 0.95 million, has been included to "general corporate purposes".

(viii) The Company has deployed net proceeds towards general corporate purposes, in accordance with Regulation 7(2) of the SEBI ICDR Regulations, to drive business growth, including, amongst other things, meeting any expenses incurred in the ordinary course of business, including salaries and wages, rent, administration expenses, insurance related expenses, and the payment of taxes and duties, servicing of borrowings including payment of interest and any other purpose as permitted by applicable laws and as approved by the Board.

51 Additional regulatory information

(a) The Company does not have any transaction and/or balance that need to be disclosed under clause 34(3) read with Part A of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended and section 186 of the Companies Act, 2013 i.e. the Company has not directly or indirectly given any loan to any person or other body corporate, given any guarantee or provided security in connection with a loan to any other body corporate or person and have not acquired by way of subscription, purchased or otherwise, the securities of any other body corporate, exceeding sixty percent of its paid-up share capital, free reserves and securities premium account or one hundred per cent of its free reserves and securities premium account, whichever is more.

(b) The Company has not entered into any subsisting material agreement, including with strategic partners, joint venture partners or financial partners, other than in the ordinary course of business.

(c) During the years ended, the Company has not been party to any merger or amalgamation and there have been no material acquisitions or divestments of business or undertakings by the Company.

(d) Neither the promoters, nor any of the key managerial personnel, senior management personnel, directors or employees of the Company has entered into an agreement, either by themselves or on behalf of any other person, with any shareholder or any other third party with regard to compensation or profit sharing in connection with the dealings of the securities of the Company.

(e) None of the director is or was a director of any listed company, whose shares are or were suspended from being traded on any stock exchanges, during the term of their directorship in such company. Further, none of the directors is, or was, a director of any listed company, which has been or was delisted from any stock exchange during the term of their directorship in such company.

(f) None of the director has been nominated, appointed or selected pursuant to any arrangement or understanding with major shareholders, customers, suppliers or others of the Company.

(g) The Company, its promoters, its directors, persons in control of the Company and the members of the promoter group have not been prohibited from accessing the capital markets and have not been debarred from buying, selling or dealing in securities under any order or direction passed by SEBI or any securities market regulator in any jurisdiction or any other authority or court.

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

(i) Borrowings secured against current and non-current assets:

The Company has been availing borrowings facilities from ICICI Bank Limited, CITI Bank N.A, State Bank of India and DBS Bank Limited on the basis of security of current and fixed assets. The Company has filed monthly statements or returns including quarterly statements of current assets with all the banks referred above, which are in agreement with the books of accounts except inclusion of Goods and service tax on the basic value of indigenously procured inventories in quarterly statements while the same is not included in books of accounts.

(j) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the company shall:

(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.

(k) The Company has disclosed other additional regulatory information in respective notes forming part of standalone financial statements.

Explanation for variance in ratios by more than 25%:

i. Current ratio has been increased primarily due to repayment of working capital facilities.

ii. Debt equity ratio has improved primarily due to repayment of working capital facilities.

iii. Debt service coverage ratio has improved due to reduction in long-term borrowings, decrease in finance cost and also due to improved EBIDTA for the year.

iv. Return on equity ratio has been decreased due to decrease in profitability and due increase in average shareholder's fund pursuant to securities premium received from QIP proceeds.

v. Net capital turnover ratio has been decreased primarily due to decrease in revenue from operation and due to decrease in current borrowings.

vi. Return on equity investments in wholly owned subsidiaries (WOS) has been decreased due to decrease in profitability pursuant to prevailing geo-political conditions and slow-downs in several industrial verticals.

52 Indirect taxes

The Company has properly complied with the provisions of Goods and Service Tax Act, 2017, The Customs Acts, 1962 and any other indirect taxes, to the extent applicable to the Company. Difference, if any, between the figures as per books of account and the respective returns, have been reconciled and would be corrected in next periodic returns and in annual returns. The said differences, if any, do not have any material impact on the standalone financial statements.

53 Social security

The Code of Social Security 2020 ('Code') relating to employee benefits during employment and post-employment received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules or interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period in which the Code becomes effective.

54 Cost audit records

The Company has maintained adequate cost records as per the provisions of the Companies (Cost Records and Audit) Rules, 2014, as amended.

55 Approval of financial statements

In terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended, these standalone financial statements for the year ended 31 March 2024 have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meeting held on 03 May 2024.

56 General

(a) All the amounts disclosed in the standalone financial statements and notes forming part of standalone financial statements have been rounded off to the nearest million and up to two decimals.

(b) All the amounts less than ' 4,999 have been disclosed as ' 0.00 million in the standalone financial statements and notes forming part of standalone financial statements.

(c) Figures for the previous years have been re-classified/re-arranged/re-grouped to conform to classification of current period, wherever necessary.