i) The Company has infused an additional equity of A$ 15 million (equivalent to ~ H82 crores) in its wholly owned subsidiary - Symphony AU Pty Limited, Australia (SAPL) on December 13, 2023 by subscribing 15,000,000 ordinary shares of A$ 1/- each to strengthen the financial standing of SAPL and its subsidiaries (Refer note no. 35).

ii) The carrying amount of long-term investments in equity shares of Symphony AU Pty. Limited, a wholly owned subsidiary company amounts to H183.91 crore as at March 31, 2024. It was incorporated to acquire Climate Technologies Pty Limited - Australia's leading manufacturer of cooling and heating appliances in June 2018 considering the strong strategic fit for the Group like complementary product range, complementary seasons, deeper extension into countries with dual climates, immediate and deep access to new geographies, insights into brand building and distribution network etc.

The business of Climate Technologies Pty. Limited was planned to be transformed through various strategic initiatives like revamping product portfolio, substantial rationalization of gross margin and cost of doing business, in-house business to outsourced business model, leveraging distribution channel etc. However, the said plan was adversely derailed on account of Covid - 19, geopolitical conflicts, adverse economic conditions and adverse climate changes in the local Australian market etc., resulting into losses in the books of Climate Technologies Pty Limited in the recent years. With normalization of some of these adversities, aforesaid strategic initiatives for business transformation have been put on fast track, resulting into substantial improvement in its gross margin and EBITDA margin since quarter ended December 31,2023. In view of this, the Company has determined the recoverable amounts of its investments in Symphony AU Pty. Limited as at March 31, 2024 by considering a discounted cash flow model. Such determination is based on significant estimates and judgements made by the management as regards the revenue growth, inflation and discount rates and are considered reasonable by the Management. On a careful evaluation of the aforesaid factors, the

Company's management has concluded that no provision for impairment in respect of such investment is considered necessary at this stage.

iii) The Company has pledged 33,400,000 (Previous year 18,400,000) ordinary shares of Symphony AU Pty. Limited, Australia worth H183.91 crores (Previous year H101.73 crores) mentioned above in favour of Standard Chartered Bank, India (security agent for Standard Chartered Bank, UK) as collateral in respect to acquisition loan availed by Symphony AU Pty Limited, Australia as per terms of the amendment and restatement agreement with the Bank (Refer note no. 35).

iv) The Company has pledged units of mutual funds worth H22.72 crores (Previous year H21.14 crores) out of the above mentioned investments in favour of ICICI Bank as security in respect of working capital facility H75 crores sanctioned by the bank (Previous year H21.95 crores availed by the Company (Refer note no. 18).

v) The Company has pledged units of mutual funds worth H43.27 crores (Previous year H31.83 crores) out of the above mentioned investments in favour of HDFC Bank as security in respect of working capital facility of H39 crores (Previous year H39 crores) sanctioned by the bank (Refer note no. 18).

i) The Company has granted Loan to Guangdong Symphony Keruilai Air Coolers Co. Limited, China for H59.44 crores (previous year H58.69 crores) (including accrued interest) carrying interest rate of 5.60% for business purpose. During the previous year the Company had granted moratorium period of one year for interest.

ii) The Company has granted Loan to Symphony Climatizadores Ltda, Brazil for H12.08 crores (previous year H10.15 crores) carrying interest rate of SOFR of one year plus 244 Basis Point (previous year LIBOR of one year plus 185 Basis Point) for business purpose.

iii) The Company has granted Loan to Symphony AU Pty. Limited, Australia for H13.57 crores (previous year HNil) carrying interest rate of AUD swap rate of one year plus 150 Basis Point for business purpose.

i) The Company has pledged units of mutual funds worth H51.83 crores (Previous year H63.69 crores) out of the above mentioned investments in favour of Standard Chartered Bank, India (security agent for Standard Chartered Bank, UK) as collateral in respect to acquisition loan availed by Symphony AU Pty Limited, Australia as per terms of the amendment and restatement agreement with the Bank (Refer note no. 35).

Trade receivables are non-interest bearing and are generally on terms of 0 to 180 days.

No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person; nor any trade or other receivable are due from firms or private companies in which any director is a partner, a director or a member.

i) The Company has granted Loan to Symphony Climatizadores Ltda, Brazil for H0.28 crores (previous year H1.18 crores) (including accrued interest) carrying interest rate of SOFR of one year plus 244 Basis Point (previous year LIBOR of one year plus 126 Basis Point) for business purpose.

ii) Interest accrued on Loan granted to Symphony AU Pty. Limited, Australia H0.85 crores (previous year HNil) carrying interest rate of AUD swap rate of one year plus 150 Basis Point for business purpose.

The Company has only one class of shares referred to as equity shares having a par value of H2/-, rank pari passu in all respects including voting rights and entitlement to dividend.

The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim Dividend.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive assets of the Company remaining after settlement of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholder.

The Board of Directors of the Company at its meeting held on February 08, 2023 and the shareholders by way of postal ballot on March 15, 2023, approved the buyback of 10,00,000 fully paid equity shares of the face value of H2/- each, aggregating to 1.43% of the paid-up capital of the Company from its shareholders on a proportionate basis through the tender offer route at a price of H2,000/- per share for an aggregate amount not exceeding H200 crores. The Company concluded the buyback procedures during the quarter ended June 30, 2023, and accordingly, 10,00,000 shares were extinguished.

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

This reserve represents the cumulative gains and losses arising on the revaluation of debt instruments measured at fair value through other comprehensive income that have been recognised in other comprehensive income, net of amounts reclassified to profit or loss when those assets have been disposed of or impairment losses on such instruments.

The Board of Directors have recommended a final dividend of H8/- (400%) per equity share of H2/- each amounting to H55.17 cr. for FY 23-24. The total dividend for FY 23-24 aggregates to H13/- (650%) per equity share of H2/-each amounting to H89.64 cr. which includes three interim dividends of H5/- (250%) per equity share paid during the year. The final dividend is subject to approval by shareholders at the ensuing Annual General Meeting of the Company.

In line with the requirement of the Companies Act, 2013, an amount H245.94 crores (Including tax on buy back of H46.14 crores) has been utilized from retained earnings. In accordance with section 69 of the Companies Act, 2013, capital redemption reserve of H0.20 crores (representing the nominal value of the shares bought back) has been created as an apportionment from retained earnings.. Further, transaction cost of buy back of shares of H2.18 cores (previous year H0.28 crores) has been reduced from retained earnings.

The portion of profits not distributed among the shareholders are termed as retained earnings. The Company may utilise the retained earnings for making investments for future growth and expansion plans, for the purpose of generating higher returns for the shareholders or for any other specific purpose, as approved by the Board of Directors of the Company.

In accordance with section 69 of the Companies Act, 2013, capital redemption reserve of H0.20 crores (representing the nominal value of the shares bought back) has been created as an apportionment from retained earnings. Consequent to such buy back, the paid-up equity share capital has reduced by H0.20 crores.

(i) During the year the Company has repaid H21.95 crores working capital loan availed in the form of Export Packing Credit and Post Shipment Credit-INR from ICICI Bank. The Company had pledged units of Mutual Funds of Kotak Nifty SDL worth H21.14 crores previous year as security (Refer Note No. 4).

The Company has not defaulted on any loans payable.

The Company has filed the quarterly stock details and other stipulated information with the bank which are in agreement with the books of accounts and there are no material discrepancies.

(i) The provision for employee benefits includes gratuity provision. For detailed disclosures, refer note no. 38.

(ii) The provision for warranty claims represents the present value of the Management's best estimate of the future outflow of economic benefits that will be required under the Company's obligations for warranties under local sale of goods legislation. The estimate has been made on the basis of historical warranty trends and may vary as a result of new materials, altered manufacturing processes or other events affecting product quality. The movement in the warranty provision is as below:

In respect of the above matters the management is reasonably confident that no material liability will devolve on the company and hence not recognised in the books of account.

For all matters contingent liability includes the order passed by the concerned authority against the Company and pending in appeal either at appellate or other higher authority level. In GST matters, contingent liability shown above also includes liability as per notices/show cause notices received from GST department for matter related to interest on GST liability already discharged.

*This represents the amount of Corporate Guarantee / Standby Letter of Credit to the extent of outstanding balance of loans availed. The total Corporate Guarantee / Standby Letter of Credit given is H237.13 crores (Previous year H239.77 crores).

c) Letter of Support issued to Guangdong Symphony Keruilai Air Coolers Co. Limited, China, wholly owned subsidiary, to provide financial support in order to allow it to meet its liabilities as they fall due and to carry on its business without significant curtailment of operations.

d) As per the E-Waste (Management) Rules, 2016, as amended, the Company has an obligation to complete the Extended Producer Responsibility targets, only if it is a participant in the market during a financial year. The obligation for a financial year is measured based on sales made in the preceding 10^th year and the Company has fulfilled its obligation for the current financial year. The Company will have an e-waste obligation for future years, only if it participates in the market in those years.

34. Segment Reporting

(a) Primary Segment :

As per recognition criteria mentioned in Ind AS - 108, Operating Segments, the Company has identified only one operating segment i.e. Air Cooling and Other Appliances Business. However substantial portion of Corporate Funds remained invested in various financial instruments. The Company has considered Corporate Funds as a separate segment so as to provide better understanding of performance of Air Cooling and Other Appliances Business.

Secondary Segment Capital Employed :

Property, plant & equipment used in the Company's business and liabilities contracted have not been identified with any of the reportable segments, as the Property, plant & equipment and services are used interchangeably between segments. The Company believes that it is not practical to provide secondary segment disclosures relating to Capital employed.

37.Leases

37.1 : Leasing Arrangement

Effective from April 01, 2019, the Company adopted 'Ind AS 116 - Leases' and applied the Standard to all lease contracts existing as on April 01, 2019 using the modified retrospective method on the date of initial application i.e. April 01,2019.

37.4 : Lease Commitments for short-term leases

The Company has entered into Short term leases for clearing and forwarding agent premises at various location of India, tenure of which is less than a year. There are no obligations or commitments with reference to such short term leases as at reporting date as such leases are cancellable at the discretion of lessee i.e. the Company.

38. Employee Benefits

(A) Defined contribution plans

The Company makes provident fund contribution which is defined contribution plan, for qualifying employees. Under the scheme, the Company is required to contribute a specified percentage of payroll costs to fund the benefits. The Company recognised H1.61 crores (Year ended March 31, 2023 H1.69 crores) for provident fund contributions in the Statement of Profit and Loss. The contribution payable to this plan by the Company is at rate specified in the rule of the scheme.

(B) Defined benefit plans

The defined benefit plan of the Company includes entitlement of gratuity for each year of service until the retirement age.

The plan typically expose the Company to actuarial risks such as: investment risk, interest risk, longevity risk and salary risk.

Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities and other debt instruments.

Interest risk : A fall in the discount rate which is linked to the Government Securities. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Longevity risk : Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Salary risk : The present value of the defined benefit plan liability is calculated by reference to the

future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan's liability.

Asset Liability The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines Matching Risk : of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

The Present value of gratuity obligations is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

39. Leave encashment

As per the policy followed by the Company, all the leaves are enjoyable in the year itself. Therefore there is no liability of leave encashment existing at the end of the year. Accordingly no provision is made for leave encashment.

40. Exceptional Items

The Company had given inter-company loans before March 31, 2022 to Guangdong Symphony Keruilai Air Coolers Company Limited (GSK), a wholly owned subsidiary of the Company in China. As at March 31,2024 amount outstanding is H59.43 crores (including interest accrued H6.91 crores). GSK was making losses until FY 2022-23 and has negative net worth. The Company has been providing letter of financial support as and when required to meet its financial obligations. However, no further financial assistance was needed by GSK, China since February, 2022 as it is self sufficient due to improved performance and cashflow.

During the year, the Company has rescheduled the repayment terms of the loan and hence taking into consideration the above factors, in accordance with the requirements of Ind AS 109 provision for impairment loss amounting to H7.73 crores has been recognized towards the loan balances in the current year. The same has been presented as an exceptional item.

44. Financial Instruments Capital Management

The Company manages its capital to ensure that the Company will be able to continue as going concern, while maximising the return to stakeholders through efficient allocation of capital towards expansion of business, optimisation of working capital requirements and deployment of surplus funds into various investment options. The Company is not subject to any externally imposed capital requirements.

relates primarily to the Company's operating activities (when revenue or expense is denominated in a foreign currency) and the Company's net investments in foreign subsidiaries.

The Company manages its foreign currency risk by hedging transactions that are expected to occur within a maximum 12-month period for hedges of forecasted sales and purchases and 24-month period for net investment hedges.

When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions, the derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable or payable that is denominated in the foreign currency.

The Company hedges its exposure to fluctuations on the translation into INR of its foreign operations by holding net borrowings in foreign currencies and by using foreign currency swaps and forwards.

At March 31,2024 the Company hedged 48% (March 31,2023: 27%) of its expected foreign currency receivable. Those hedged sales were highly probable at the reporting date. This foreign currency risk is partly hedged by using foreign currency forward contracts.

Foreign currency sensitivity

The following table details the Company's sensitivity to a 5% increase and decrease in the Hagainst the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their transaction at the period end for a 5% change in foreign currency rates. A positive number below indicates an increase in profit or equity where the Hstrengthens 5% against the relevant currency. For a 5% weakening of the Hagainst the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.

Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.

Financial instruments that are subject to concentrations of credit risk, principally consist of balance with banks, investments (Bond, NCD, preference share and mutual fund), trade receivables, loans and advances.

Balances with banks were not past due or impaired as at the year end. In other financial assets that are not past dues and not impaired, there were no indication of default in repayment as at the year end.

Credit risk arises from the possibility that customers may not be able to settle their obligations as agreed. To manage this risk, the Company periodically assesses the financial reliability of customers, taking into account their financial position, past experience and other factors. The Company manages credit risk through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macro economic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue.

Price risk

The Company's exposure to price risk arises from investments in Bond, NCD, preference share and mutual fund held by the Company and classified in the balance sheet at fair value through OCI and at fair value through profit or loss. To manage its price risk arising from investments, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

Price risk sensitivity

The table below summarises the impact of increases / decreases of the index on the Company's equity and profit for the year.

Interest rate risk

The Company's majority investments are primarily in fixed rate interest bearing investments. Except in case of Market Linked Debentures the Company is not significantly exposed to interest rate risk.

Liquidity risk

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

Maturities of financial liabilities:

The tables below analyse the Company's financial liabilities into relevant maturity groupings base on their contractual maturities for all non-derivative financial liabilities.

Reason for change more than 25%:

Return on tax free bonds has been increased due to one time gain of H5.38 crores on sale of entire tax free bonds and overall increase in interest rate cycle on account of which there is increase in overall return of NCD/ MLD & Mutual funds.

Debt Service Coverage Ratio (DSCR) is not applicable because the Company does not have any term borrowings.

48. Other Statutory Information

(i) The Company did not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) Based on information available with the Company, balances with Struck off Companies are as below:-

(iii) The Company did not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

(v) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with any oral or written understanding that the Intermediary shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with any oral or written understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(viii) The Company has no such transactions which are not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

49. The Ministry of Corporate Affairs (MCA) vide its notification dated March 24, 2021, has issued Companies (Accounts) Amendment Rules, 2021 introducing Rule 11(g) effective from April 01, 2023 which states that every company which uses accounting software for maintaining its books of account shall use only the accounting software where there is a feature of recording audit trail of each and every transaction, and further creating an edit log of each change made to books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The primary accounting software used by the Company for maintaining books of account has a feature of recording audit trail edit logs facility and has been operative throughout the financial year for the transactions recorded in the software impacting books of account at application level except that audit trail was not enabled at the database level to log any direct data changes.

50. Amount below H50 thousand is mentioned as "0.00".

51. The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval of financial statements to determine the necessity for recognition and/or reporting of subsequent events and transactions in the financial statements. As of April 30, 2024, there were no subsequent events and transactions to be recognised or reported that are not already disclosed.

52. Approval of financial statements

The financial statements were approved for issue by the board of directors on April 30, 2024.