iii. Title deeds of all immovable properties are held in the name of the company.

iv. On transition to Ind AS (i.e. 1 April 2015), the Company has elected to continue with the carrying value of all Property, plant and equipment measured as per previous GAAP and used that carrying value as the deemed cost of Property, plant and equipment.

v. Capital work in progress (CWIP)

Capital work in progress (CWIP) as at 31 March 2024 comprises expenditure for the plant and building in the course of construction. These expenditures relates to the various projects undertaken for new models and modification to the existing models of the Company. Total amount of CWIP is INR 2,143 lacs (31 March 2023: INR 1,841 lacs).

The Company's leases mainly comprise of land and buildings. The Company has lease of land and buildings for manufacturing, warehouse and office facilities. Right-of-use-assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. The lease terms for leasehold buildings ranges between 2 years to 9 years and for leasehold land it is for 99 years.

i) On transition to Ind AS (i.e. 1 April 2015), the Company has elected to continue with the carrying value of all Intangible assets measured as per previous GAAP and used that carrying value as the deemed cost of Intangible assets.

ii) Intangible assets under development

Intangible assets under development comprises expenditure for the development of customised softwares. These expenditures relate to the various projects undertaken by the Company. Total amount of Intangible asset under development is Nil (31 March 2023: INR 164 lacs).

The Company holds 87.25% shares of Elica PB Whirlpool Kitchen Appliances Private Limited.

The company has, with effect from 29 September 2021 acquired control of Elica PB Whirlpool Kitchen Appliances Private Limited by acquisition of 38.25% additional shareholding for a consideration of INR 42,484 lacs taking its total shareholding in Elica PB Whirlpool Kitchen Appliances Private Limited to 87.25%. Upon the acquisition of above shareholding on 29 September 2021, Elica PB Whirlpool Kitchen Appliances Private Limited has become a subsidiary of the Company

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.

Trade receivables are non-interest bearing and are generally on terms of 0 to 135 days. For terms and conditions relating to related party receivables, refer note 36.

There are no unbilled receivables, hence the same is not disclosed in the ageing schedule.

Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one day to three months, depending on the immediate cash requirements of the Company, and earn interest at the respective short-term deposit rates.

Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share. The dividend, if declared, are paid in Indian rupees. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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

The ultimate holding company provides various share-based payment schemes to the employees of the Company including key management personnel. The share-based payment reserve is used to recognise the value of equity-settled share-based payments provided to employees as a part of their remuneration. Refer note 34 for further details. It represents amount of parent equity employee Stock option, Restricted Stock Units (RSU) and Performance Share Units (PSU) outstanding/transferred/ exercised during the year.

a) There are no amount due for payment to the Investor Education and Protection Fund under section 125 of the Companies Act, 2013.

b) Terms and conditions of the above financial liabilities:

* Trade payables are non-interest bearing and are normally settled as per agreed credit terms. Trade payables from related parties are INR 2,383 lacs (31 March 2023: INR 2,625 lacs), for terms and conditions with related parties, refer to Note 36.

- The range of interest rate for lease liabilities is 4.47% to 9.04%, (31 March 2023 3.53% to 8.93%), with maturity between 2023-2033 (31 March 2023: 2022 - 2031)

- Other financial liabilities are non-interest bearing and have an average term varying from 0 to 180 days.

- For explanations on the Company's credit risk management processes, refer note 42.

- The maturity analysis of financial liabilities are disclosed in Note 42 Liquidity Risk.

Provision for warranties is recognized on actuarial basis for expected warranty claims on products sold. It is expected that most of this cost will be paid over the warranty period as per warranty terms ranging from 1 to 10 years. Assumptions used to calculate the provision for warranties were based on current and previous year sales level and the failure trend in respect of defective products.

The Company has made provision for indirect taxes and legal matters comprises of numerous cases that arise in the ordinary course of business. Basis the current status of litigations, management has assessed the provision for litigations as non-current and have not been discounted as it is not practicable for the Company to estimate the timing of the provision utilisation and cash outflows, if any, pending resolution.

A deferred revenue is recognised when the Company has obligation to provide maintenance services to a customer for which the Company has received consideration from the customer. If a customer pays consideration before the Company provides such services to the customer, a deferred revenue is recognised when the payment is made or the payment is due (whichever is earlier). Deferred revenue is recognised as revenue when the Company performs services under the contract.

There was a fire at one of the warehouse of the Company situated at Alipur, Delhi on March 25, 2024 resulting in destruction/ damage of inventories and Property, Plant and Equipment (PPE) with value of INR 1,890 lacs and INR 1 Lac respectively. The loss aggregating to INR 1,891lacs has been accounted for in the books and disclosed as "Exceptional item" in the standalone statement of profit and loss. The process relating to filing of claim with the insurance company is under process along with the process of filing the surveyor report in respect of claim for inventories and PPE. The Company has adequate insurance coverage for the aforesaid loss and based on its assessment of the loss and the terms and conditions of the insurance policies, the claim is fully admissible.

31 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares. There are no convertible preference shares or debentures being issued by the Company.

32 Significant accounting judgements, estimates and assumptions

The preparation of the standalone financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future years.

Judgements

In the process of applying the Company's accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the standalone financial statements.

Determining the lease term of contracts with renewal and termination options - Company as a lessee

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate.

Revenue from contracts with customers

The Company applied the following judgements that significantly affect the determination of the amount and timing of revenue of contract with customers:

Determining method to estimate variable consideration and assessing the constraint:

Certain contracts for the sale of products include a right to return and volume rebates that give rise to variable consideration. In estimating the variable consideration, Company is required to use either the

expected value method or the most likely amount method based on which method better predicts the amount of consideration to which it will be entitled.

The Company determined that the expected value method is the most appropriate method in estimating the variable consideration for the sale of products with rights to return and volume rebates, given the large number of customer contracts that have similar characteristics. In estimating the variable consideration for the sale of product with volume rebates, the Company determined that using a combination of the most likely amount method and expected value method is appropriate. The selected method that better predicts the amount of variable consideration was primarily driven by the number of volume thresholds contained in the contract. The most likely amount method is used for those contracts with a single volume threshold, while the expected value method is used for contracts with more than one volume threshold.

Before including any amount of variable consideration in the transaction price, the Company considers whether the amount of variable consideration is constrained. The Company determined that the estimates of variable consideration are not constrained based on its historical experience, business forecast and the current economic condition. In addition, the uncertainty on the variable consideration will be resolved within a short time frame.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Share-based payments

The Company measures the cost of equity-settled transactions with employees by ultimate holding company using a Black Scholes Options Pricing model to determine the fair value of the liability incurred. Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in note 34.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial

valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds where remaining maturity of such bond correspond to expected term of defined benefit obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.

Further details about gratuity obligations are given in note 33.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. See note 41 and 42 for further disclosures.

Revenue recognition- Estimating variable consideration for returns and volume rebates

The Company estimates variable considerations to be included in the transaction price for the sale of products with rights of return and volume rebates.

The Company developed a statistical model for forecasting sales returns. The model used the historical return data of each product to come up with expected return percentages. These percentages are applied to determine the expected value of the variable consideration. Any significant changes in experience as compared to historical return pattern will impact the expected return percentages estimated by the Company.

The Company expected volume rebates are analysed on a per customer basis for contracts that are subject to a single volume threshold. Determining whether a customer will be likely entitled to rebate will depend on the customer's historical rebates entitlement and accumulated purchases to date.

The Company applied a statistical model for estimating expected volume rebates for contracts with more than one volume threshold. The model uses the historical purchasing patterns and rebates entitlement of customers to determine the expected rebate percentages and the expected value of the variable

consideration. Any significant changes in experience as compared to historical purchasing patterns and rebate entitlements of customers will impact the expected rebate percentages estimated by the Company. The Company updates its assessment of expected returns and volume rebates quarterly and the refund liabilities are adjusted accordingly. Estimates of expected returns and volume rebates are sensitive to changes in circumstances and the Company's past experience regarding returns and rebate entitlements may not be representative of customers' actual returns and rebate entitlements in the future.

Product warranties accruals

The provisions for product warranties, on account of goods sold, recorded in the balance sheet on the basis of actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate and failure rates. Due to the complexities involved in the valuation and its long-term nature, a provision for product warranty is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate, the management considers the interest rates of government bonds in currencies consistent with the currencies of the product warranty provision.

The failure rate is based on actual number of calls received by the Company from customers on account of complaints.

Further details about provisions for product warranties are given in note 16.

Taxes

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the nature of business differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates. The amount of such provisions is based on various factors, such as experience of previous tax audits and different interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the jurisdiction of the Company.

Leases

As the Company's lease agreements normally do not provide an implicit interest rate, we apply the Company's incremental borrowing rate based on the information available at commencement date in determining the present value of future lease payments. Relevant information used in determining the Company's incremental borrowing rate includes the duration of the lease, location of the lease, and the Company's credit risk relative to risk-free market rates.

33 Gratuity and other post-employment benefit plans

Gratuity (being administered by a Trust) is computed as 15 days salary, for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation. The benefit vests on the employee completing 5 years of service. The Gratuity plan for the Company is a defined benefit scheme where annual contributions as demanded by the insurer are deposited, to a Gratuity Trust Fund established to provide gratuity benefits. The Trust has taken an Insurance policy, whereby these contributions are transferred to the insurer. The Company makes provision of such gratuity asset/ liability in the books of account on the basis of actuarial valuation carried out by an independent actuary.

The Company also provide certain additional retirement benefits to the employees of the Faridabad Refrigeration Operations where INR 35,000 and Puducherry Washer Operations where INR 30,000 is paid to employee on retirement. This retirement benefit is an unfunded defined benefit scheme. The Company makes provision of such liability on the basis of actuarial valuation carried out by an independent actuary.

The following tables summarise the components of net benefit expense recognised in the statement of profit or loss and the net funded status and amounts recognised in the balance sheet for the respective plans:

The average duration of the defined benefit plan obligation at the end of the reporting period is 13.25 years (31 March 2023: 13.52 years).

34 Share-based payments

The Company does not provide any share-based compensation to its employees. However, the ultimate holding company, Whirlpool Corporation, USA has provided various share-based payment schemes to employees.

A. Details of these plans are given below:

I. Employee Stock Options

A stock option gives an employee, the right to purchase shares of Whirlpool Corporation at a fixed price for a specific period of time. The grant price (or strike price) is fixed based on the closing price of Whirlpool Corporation common stock on the date of grant. Stock options vest in three equal annual instalments and expire in ten years from the date they are granted.

II. Restricted Stock Units (RSU) & Performance Stock Units (PSU)

a. Performance - These are the units of stock granted to employee at nil exercise price. It converts one for one shares of Whirlpool Corporation at the end of the vesting period of three years.

b. Time based- These are the units of stock granted to employee at nil exercise price. It converts one for one shares of Whirlpool Corporation at the end of the vesting period in the following manner: -

i) One third of the option vests after one year, another one third vests after two years and final one third will vests after three years.

ii) Vesting for one half option after two years and rest after four years.

iii) Vesting for one half option after one year and rest after three years.

There were cancellations in employee stock options and restricted stock units (RSU) and performance stock units (PSU). Refer below movement for details.

Movements during the year

The following table illustrates the number and weighted average share prices (WASP), and movements during the year:

1) The weighted average fair value of options (as per Black Scholes model) at the date of exercise of these options was $ 31.06 (31 March 2023: $ 35.23).

2) The weighted average remaining contractual life for the share options outstanding as at 31 March 2024 was 1.10 years (31 March 2023: 3.14 years)

3) The weighted average fair value of options granted during the year was Nil (31 March 2023: Nil).

4) The range of exercise prices for options outstanding at the end of the year was $ 132.19 to $ 213.23 (31 March 2023: $ 132.19 to $ 213.23).

For year ended 31 March 2024 and 31 March 2023: No options have been granted.

The fair value of RSUs and PSUs is calculated at the grant date by multiplying the number of shares granted by the discounted fair value of Whirlpool Corporation's stock price. This discounted value is determined based on risk-free rate. The fair value of the grant is then expensed over the vesting period.

35 Commitments and contingenciesa. Leases

Operating lease commitments - Company as lessor

The Company has entered into operating lease for a specific area of its building located at Faridabad. The lease is renewable with mutual consent of both the parties. The income recognised in the Statement of profit and loss under the head "Other Income" is INR 127 lacs (31 March 2023: INR 121 lacs).

b. Commitments

Capital work contracted but still under execution (net of advances) is estimated at INR 649 lacs (31 March 2023: INR 1,966 lacs).

c. Contingent liabilities

I. Direct tax litigations

a. (i) For AY 2004-05 to 2005-06, the pending Transfer Pricing (TP) litigation of INR 1,040 lacs (31 March 2023: INR 1,068 lacs) on account of TP adjustment made in the TP assessment for alleged short fall in profit on account of differences in the arm's length price and prices charged / received by the Company from associated enterprises are pending for adjudication / re-computation before the ITAT and AO / TPO respectively. The year wise facts and updates are as follows:-.

AY 2004-05 - The company in the earlier years received a revised final assessment order from the TPO / AO giving effect to the ITAT order directing re-computation of TP adjustments on the appeal of the Revenue against the -CIT-A order deleting the TP adjustments of INR 7,968 lacs as per the original TP / assessment order. The TPO while giving effect to the ITAT order sustained an addition of INR 633 lacs (March 2023 INR: 700 lacs) attributing the same to the alleged general functions performed by WOIL on behalf of its AE's. The DRP, on the objection of the company, directed the TPO/ AO to pass a speaking order but the TPO/ AO continued with the TP adjustment of INR 633 lacs (31 March 2023: INR 700 lacs) against which, the company is in appeal for second time before the ITAT.

AY 2005-06 - The Company in the earlier years received a favorable order from the ITAT where in the ITAT deleted TP adjustments of INR 9,327 lacs (31 March 2023: INR 9,300 lacs) by upholding the CIT(A) order restricting the TP adjustment to the international transaction only. For balance adjustments of INR 407 lacs, ITAT had set aside the issue to the AO / TPO for re-computation of the TP adjustments.

(ii) AY 2008-09 to 2020-21 - Transfer Pricing Adjustment on account of AMP and other issues

In the Transfer Pricing assessment of the company for AY 2008-09, the TPO / AO made transfer pricing adjustments to the return income of the company alleging excessive Advertisement, Marketing & Sales Promotion (AMP) expenses incurred by the company.

The appeal of the company and the revenue against the ITAT order for AY 2008-09 was decided by the Hon'ble High Court in favor of the company. Aggrieved by the order of the Hon'ble High Court favoring the company, Revenue filed SLP before the Hon'ble Supreme Court which is still pending. In view of the pending SLP, Revenue is continuing with similar TP adjustments on AMP issues in all the future assessment years for which assessment orders have been passed. The cumulative pending litigation at different forums on account of AMP issues for AY 2008-09 to AY 2020-21 as on March, 2024 is INR 1,51,527 lacs (31 March 2023: INR 1,38,432 lacs) and on account of trading segments issues for AY 2020-21 as on 31 March 2024 is INR 5,032 lacs (31 March 2023: INR Nil).

The assessment year wise facts of the cases pending at different level are as under:-

AY 2008-09 - The revenue has filed SLP before the Hon'ble Supreme Court against the order of the Hon'ble Delhi High Court allowing the appeal of the company and dismissing the appeal of the revenue on Transfer Pricing Adjustment of INR 20,343 lacs (31 March 2023: INR 20,343 lacs) on AMP issue.

AY 2009-10, 2010-11,2012-13, 2013-14 & 2014-15 - The TPO / AO while giving effect to the order of the Hon'ble HC for AY 2009-10 and ITAT order for AY 2010-11, 2012-13, 2013-14, 2014-15 did not allow relief granted in the respective orders for cumulative TP adjustment on AMP issue for INR 47,346 lacs (31 March 2023: INR 47,346 lacs) and continued with the TP adjustments made in the original TP / Assessment orders. Aggrieved with the TPO / AO's orders for these AY, the company filed writ(s) before the Hon'ble High Court and got stay in the operation of the TPO orders till the pending SLP of the Revenue for AY 2008-09 is decided by the Hon'ble Supreme Court.

AY 2011-12 - The TPO, while granting appeal effects to the ITAT order, did not grant relief as directed in the ITAT order and accordingly, the company filed an objection before the DRP. The DRP directed the AO to pass a speaking order but the AO passed the revised final assessment order sustaining TP adjustment on account of AMP expenses of INR 29,445 lacs (31 March 2023: INR 29,400 lacs). The Appeal of the company against the DRP / revised final assessment order of the AO is pending before the ITAT for adjudication. The tax demands raised in the assessment order on account of transfer pricing adjustments have been stayed by the ITAT and extension of the stay of the tax demand also allowed by the ITAT from time to time.

AY 2015-16 - In the earlier year, ITAT based on the Hon'ble High Court order for AY 2008-09, 2009-10 and its own order for AY 2014-15, has allowed the appeal of the company and directed the TPO / AO to delete the TP adjustments made in the TP assessment order. Initially, the AO did not grant any relief as directed in the ITAT order and hence, the company filed an appeal before the CIT-A. The company further filed a rectification application with the AO and accordingly, the AO granted consequential appeal effects of the ITAT order. Accordingly, the appeal of the company before the CIT-A was dismissed as being infructuous.

The revenue did not file any appeal before the High Court against the ITAT order, however, filed a miscellaneous application seeking rectification of ITAT order allowing deletion of the Transfer Pricing adjustment of INR 6,900 lacs (31 March 2023: INR 6,900 lacs)

AY 2016-17- In the earlier years, the company received a favorable order from ITAT deleting TP adjustments of INR 6,152 lacs (31 March 2023: INR 6,200 lacs ) on AMP issued by following its order for AY 2015-16 in favor of the company. The revenue did not file any appeal before the Hon'ble High Court against the ITAT order but obtained the consent of the company to file an appeal before the High Court in the circumstances, the pending SLP of the revenue for AY 2008-09 is decided against the company.

AY 2017-18 - The company's appeal against the DRP / final assessment order confirming TP adjustment of INR 11,579 lacs (31 March 2023: INR 11,600 lacs) on account of AMP expenses is pending with ITAT. Tax demands raised on the TP adjustments have been stayed by the ITAT and extension of stay also allowed from time to time on application of the company.

AY 2018-19 - The company's appeal against the DRP / final assessment order confirming TP adjustment of INR 17,039 lacs (31 March 2023: INR 16,700 lacs) on account of AMP expenses is pending with ITAT. Tax demands raised on the TP adjustments have been stayed by the ITAT and extension of stay also allowed from time to time on application of the company.

AY 2020-21 - The company during the year received draft assessment order where in the TPO/ AO in its order made Transfer Pricing adjustment of INR 12,723 lacs (31 March 2023: INR NIL) on account of AMP expenses and TP adjustment of INR 5,032 lacs (31 March 2023: INR NIL) in the Trading Segments. The company filed an objection against the draft assessment order before the DRP which is pending for disposal.

b. In the Income-tax assessments for preceding assessment years, AY 1994-95 to AY 2020-21 the Assessing Officer (AO) had made disallowances / additions of various expenses and claims of the company for which the appeal(s) of the company and also the revenue are pending at various forums.

For AY 1994-95 to 2020-21, the pending Non-TP litigation of INR 10,568 lacs (31 March 2023: INR 8,455 lacs) on account of Non-Transfer Pricing (TP) adjustment (majorly on account of R&D expenses, bad debts, provision for package tour / travel expenses and other disallowances). During the current year, following is the update.

AY 2020-21 - During the year the company received a draft assessment order from the AO disallowing various claims of the assesse on non-transfer pricing issues (disallowance of gratuity paid u/s 43B and Education Cess) for INR 2,113 lacs (31 March 2023: INR NIL). The company has filed an objection before the DRP which is pending for disposal.

All of the above-mentioned matters are pending with various judicial/appellate authorities including Dispute Resolution Panel, CIT(Appeals), Income Tax Appellate Tribunal, High Court

and Supreme Court. For some of the matters, judicial / appellate authorities have decided the cases in favor of the Company. However, these are being contested again by the Revenue.

The Company based on its assessment of ongoing litigations, believes that it has merit in these cases and it is only possible, but not probable that these cases may be decided against the Company. Hence, these have been disclosed as contingent liability and no provision is required to be considered in the standalone financial statements.

IV. Ministry of Environment, Forest and Climate Change has issued E-Waste (Management) Rules, 2022 ("E-waste Rules") which requires the producers to obtain and implement extended producer responsibility targets as per Schedule III and Schedule IV of the said Rules. Basis management's internal assessment of E-waste rules, Management believes that 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 years. Basis management assessment and in accordance with Appendix B of Ind AS 37, 'Provisions, Contingent Liabilities and Contingent Assets', the Company will have an e-waste obligation for future years, only if it participates in the market in those years.

During the Current year, the direction given by Central Pollution Control Board (CPCB), the Company was required to channelise 48,883 MT of e-waste and has channelised 48,883 MT of e-waste through recyclers as defined under the provision of the E-waste rules.

Terms and conditions of transactions with related parties

All the above mentioned transactions with the related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash.

There have been no guarantees provided or received for any related party receivables or payables other than the letter of comfort which has been given by the ultimate holding company, Whirlpool Corporation, to respective banks against bank overdraft, cash credit, letter of credit etc. facilities provided to the Company.

37 Segment information

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company's other components, and for which discrete financial information is available. The Company is engaged in manufacturing and trading of Refrigerators, Washing Machines, Air Conditioners, Microwave Ovens, Kitchen appliances, built in and Small appliances, the risks and returns on these being similar, it recognizes Home appliances as its only primary business segment. The 'Chief Operating Decision Maker' i.e MD and CFO monitors the operating results of the Company's business as single segment. Accordingly in context of 'Ind AS 108 - Operating Segments' the principle business of the Company constitute a single reportable segment. Accordingly, income from sale of goods comprises the primary basis of segmental information set out in these financial statements.

Non-current operating assets

The Company has common non-current operating assets for domestic as well as overseas market. Hence, separate figures for these assets are not required to be furnished.

39 Hedging activities and derivativesDerivatives not designated as hedging instruments

The Company uses foreign exchange forward contracts to manage some of its transaction exposures. The foreign exchange forward contracts are not designated as hedge instrument and are entered into for periods consistent with foreign currency exposure of the underlying transactions, generally for the following period:

- From one to five months in case of vendor payments

40 Fair values

The management assessed that cash and cash equivalents, trade receivables, loans, other receivables, trade payables and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The loss allowance on the financial assets are disclosed in note 5 as at 31 March 2024: INR 44 lacs (31 March 2023: INR 181 lacs) provided in the books on account of uncertainty of recoverability for the amount.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The management has assessed that the carrying value of financial assets and financial liabilities carried at amortised cost approximate their fair values (refer note 5 for financial assets and note 15 for financial liabilities carried at amortised cost).

There have been no Transfers between Level 1 and level 2 during the period.

42 Financial risk management objectives and policies

The Company's principal financial liabilities, other than derivatives, comprise trade and other financial liability. The main purpose of these financial liabilities is to finance the Company's operations and to provide guarantees to support its operations. The Company's principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks and also ensure that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company's policy that no trading in derivatives for speculative purposes may be undertaken.

The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

A. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as commodity risk. Financial instruments affected by market risk include deposits and derivative financial instruments.

The sensitivity analysis in the following sections relate to the position as at 31 March 2024 and 31 March 2023.

The analysis exclude the impact of movements in market variables on the carrying values of gratuity, other post-retirement obligations and provisions.

The sensitivity of the relevant profit and loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of 31 March 2024 and 31 March 2023.

a. 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's exposure to the risk of changes in market interest rates relates primarily to the overdraft, letter of credit, cash credit etc. facilities provided by the respective banks to the Company carrying variable interest rates.

Since, the Company has not availed any long-term credit facilities, therefore there is no need for the Company to enter into hedge contract to mitigate the possible exposure risk.

b. Foreign 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 exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities (when revenue or expense is denominated in a foreign currency).

The Company manages its foreign currency risk by hedging transactions that are expected to occur within a maximum period of five month for hedges of forecasted purchases and a maximum period of three year period for hedges of forecasted cash inflow relating to senior notes (including interest).

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.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD and Euro exchange rates, with all other variables held constant. The impact on the Company's profit before tax is due to changes in the fair value of monetary assets and liabilities.

The Company's exposure to foreign currency changes for all other currencies is not material.

c. Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing purchase and manufacture of various electronic parts which consist of copper element and therefore require a continuous supply of the same. However, due to the non-significant movement in the prices of the copper, the Company has not entered into any forward contracts for commodity hedging purpose.

B. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

a. Trade receivables

Customer credit risk is managed subject to the Company's established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and balances of customers are not covered by letters of credit or other forms of credit insurance.

An impairment analysis is performed at each quarter end on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note 8. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

b. Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with the Company's policy. Investments of surplus funds are made only with approved banks and within limits assigned to each bank by the ultimate holding company.

The Company's maximum exposure to credit risk for the components of the balance sheet at 31 March 2024, 31 March 2023 is the carrying amounts as illustrated in note 9.

C. Liquidity risk

The Company monitors its risk of a shortage of funds through fund management exercise at regular intervals.

The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted payments except otherwise stated.

43 Capital management

For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants, if any. To maintain or adjust the capital structure, the Company reviews the fund management at regular intervals and take necessary actions to maintain the requisite capital structure.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2024 and 31 March 2023.

45 Due to inadequacy of profits in the current financial year, the remuneration, duly approved by the Board and Shareholders through ordinary resolution, paid/ payable to the Managing Director of the Company for the year ended 31 March 2024 has exceeded the limits prescribed under section 197 of the Act by INR 434.90 lacs. The Company has proposed a special resolution for approval of Shareholders in the forthcoming Annual General Meeting. Pending such approval, the remuneration already paid in excess of the limit is being held in trust.

46 Other Statutory Information

Additional Regulatory Information/disclosures as required by General Instructions to Division II of Schedule III to the Companies Act, 2013 are furnished to the extent applicable to the Company.

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

(ii) The Company does not have any transactions with Companies struck off.

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

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

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the 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

(vi) 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:

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 to or on behalf of the ultimate beneficiaries

(vii) The Company has not any such transaction which is 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.

(viii) No borrowings from banks or financial institution has been availed by the Company on the basis of security of current assets.

(ix) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

47 The Company has appointed independent consultants for conducting a transfer pricing study to determine whether the international transactions with associate enterprises and specified domestic transactions were undertaken at "arm's length basis". Adjustments, if any arising from the transfer pricing study shall be accounted for as and when the study is completed. The management confirms

that all international transactions with associate enterprises and specified domestic transactions are undertaken at negotiated contracted prices on usual commercial terms. Transfer pricing certificate under Section 92E for the year ending 31 March 2023 has been obtained and there are no adverse comments requiring adjustments in these accounts.

48 Pursuant to amendment by Ministry of Corporate Affair (MCA) in the Companies (Accounts) Rules 2014, the Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except that audit trail feature is not enabled for changes made using privileged/ administrative access rights to the SAP and related interfaces across the accounting software at database level. Further, no instance of audit trail feature being tampered with was noted in respect of above said software except in regard to privileged access users where the audit trail feature has not been enabled.

49 Based on review of commonly prevailing practices and to align with presentation used by the peer group companies, the management of the Company has reclassified Government Incentive receivables of INR 1,831 lakhs of March 31, 2023 from other current assets to other financial assets. The management believes that such reclassifications does not have any material impact on information presented in the Statement of Profit and loss and in the balance sheet at the beginning of the preceding period.

50 The Code on Social Security, 2020 ('Code') has been notified in the Official Gazette in September 2020 which could impact the contribution by the Company towards certain employment benefits. The effective date from which the changes and rules would become applicable is yet to be notified. Impact of the changes will be assessed and accounted in the relevant period of notification of relevant provisions. Based on a preliminary assessment, the Company believes the impact of the change will not be significant.