(a) Terms/rights attached to each equity share

(i) The Company has only one class of share referred to as equity share having a par value of ' 2 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. Payment of dividend is also made in foreign currency to shareholders outside India. In the unlikely event of the liquidation of the Company the equity shareholders are eligible to receive the residual value of the assets of the Company if any after preferential amount are paid off, in the proportion of their shareholding in the Company.

(ii) Over the period of five years immediately preceding 31st March, 2023 and 31st March, 2022, neither any bonus shares were issued nor any shares were allotted for consideration other than cash. Further, no shares were bought back during the said period.

1 Securities premium

Securities premium reserve represents premium received on equity share issued, which can be utilised only in accordance with the provisions of the Companies Act,2013 (the Act) for specified purposes.

2 Capital reserve

Capital reserve represent reserve created pursuant to the business combinations upto year end.

3 Revaluation reserve

Revaluation reserve represents reserve created on revaluation of some of Property, Plant and Equipment (PPE) of the Company which can be transfer to General reserve only on disposal of those assets.

4 General reserve

General reserve is created from time to time by transfering profits from retain earning and can be utilised for purposes such as dividend pay out, bonus issued etc.and it is not an item of other comprehensive income.

5 Other Comprehensive Income (OCI)

OCI presents the cumulative gain and losses arising on the revaluation of equity instruments measured at Fair Value Through Other Comprehensive Income (FVTOCI), under an irrevocable options, net of amount reclassified to retained earnings when such assets are disposed off.

32. EMPLOYEE BENEFITS

(a) Defined contribution plan

The Company makes contribution towards recognized provident fund to defined contribution retirement benefit plan for qualifying employee. Under the plan, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the benefit.

The Company has recognized an amount of ' 263.39 lakhs (P.Y. ' 229.23 lakhs) as expense under the defined contribution plan in the statement of profit and loss for the year.

(b) Defined benefit plan

The Company makes annual contributions to Employees Group Gratuity with LIC,a funded defined benefit plan for employees of the Company.

Actuarial value of plan assets and the present value of the defined benefit obligations for gratuity were carried out as on 31st March every year. The present value of the defined benefit obligations and the related current service cost and past service cost were measured using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of benefit entitlement and measures each unit separately to built up the final obligation.

The principle assumptions used for the purpose of the actuarial valuation were as follows Financial assumptions

Disclosure in case of non-provision of interest due to contractual terms with MSME Vendors can be as under

Disclosure of payable to vendors as defined under the “Micro, Small and Medium Enterprises Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said act, As per the intimation received from them on request made by the Company. There are no overdue principle amount/interest payable amounts for delayed payments to such vendors at the balance sheet date. The payment is made to vendors according to terms & conditions mutually agreed to both parties and accordingly there is no delay in payment to these vendors & no interest liability therefore.

(B) FAIR VALUE MEASUREMENTS

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

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 balances with banks, trade receivables and other receivables.

(C) CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.As at 31st March 2023, the Company has only one class of equity shares and has low debt. Consequent to such capital structure, there are no externally imposed capital requirements. In order to maintain or achieve an optimal capital structure, the Company allocates its capital for distribution as dividend or re-investment into business based on its long term financial plans.

(D) FINANCIAL RISK MANAGEMENT - OBJECTIVES AND POLICIES

The Company’s activities expose it to a variety of financial risks are market risk, credit risk, liquidity risk. The Company has a risk management policy which covers risks associated with the financial assets and liabilities. The risk management policy is approved by the Board of Directors. The focus of the policy is to assess the unpredictability of the financial environment and to mitigate potential adverse effects on the financial performance of the Company.

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 risks are interest rate risk, currency risk and other price risk.

(a) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Since the Company has insignificant interest bearing borrowings, the exposure to risk of changes in market interest rates is minimal. The Company has not used any interest rate derivatives.

(b) Foreign currency risk

The Company operates internationally and portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its sales and services in overseas markets and purchases from overseas suppliers in various foreign currencies. Foreign currency exchange rate exposure is partly balanced by purchasing of goods, commodities and services in the respective currencies.

Particulars of unhedged foreign currency exposures as at the reporting date are given as part of note 33.

The below table demonstrates the sensitivity to a 5% increase or decrease in the foreign currency against INR, with all other variables held constant. The sensitivity analysis is prepared on the net unhedged exposure of the Company as at the reporting date. 5% represents management’s assessment of reasonably possible change in foreign exchange rate.

(2) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and investment securities. Credit risk arises from cash held with banks and financial institutions, as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. The Company’s exposure are continuously monitored.

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

The Company consistently generates sufficient cash flow from operations to meet its financial obligations as and when they fall due.

The tables below provides detail regarding the contractual maturities of significant financial liabilities As at 31st March 2023 and 31st March, 2022.

44. GOVERNMENT GRANTS

The Company has a unit in Telangana. The Company is eligible for government grants in accordance with the T-IDEA (Telangana State Industrial Development and Entrepreneur Advancement) Incentive Scheme 2014, the Company is eligible for following grants with reference to the unit established in Telangana.

(a) 100% of reimbursement of stamp duty and transfer duty paid on purchase of land, 25% rebate in land cost in Industrial Parks and 15% investment subsidy subject to a maximum capital of ' 20 lakhs. Accordingly, the Company has recognized deferred grant of ' 29.30 lakhs, which is recognized as income on a straight line basis over the period of scheme of 30 years. An amount of ' 0.98 lakhs is recognized as income under Other Income in note 24. An amount of ' 22.47 lakhs remains unamortized As at 31st March 2023, which is reflected under note 17 non-current liabilities and note 21 other current liabilities.

(b) Reimbursement of 100% of net VAT/CST/SGST for a period of 5 years from the date of commencement of commercial production. Accordingly, the Company has recognized an income of NIL (P.Y. ' NIL), being the amount of refund of net SGST paid by the Company to the Government of Telangana.

45. There is a no substantial difference in stock data provided to bankers vis-a-vis stock data as per financial statement.

46. Previous year’s figures have been regrouped /reclassified wherever necessary.