Income Tax (Benefits)/Expenses

The Company is subject to income tax in India on the basis of Standalone Financial Statements. As per the Income Tax Act, the Company is liable to pay income tax which is the higher of regular income tax payable and the amount payable based on the provisions applicable for Minimum Alternate Tax (MAT).

MAT paid in excess of regular income tax during a year can be carried forward for a period of 15 years and can be set-off against future tax liabilities.

10.1 The Company has carried forward Minimum Alternate Tax Credit of ' 3,026 Lakhs as on 31st March 2023 (a component of deferred tax asset in the financial statements) which was accounted for in the earlier years. In the opinion of the management sufficient future taxable profit will be available against which these unused tax credits can be utilized within the stipulated period under the provisions of Income Tax Act 1961.

10.2 The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year ended 31st March 2023 and 31st March 2022 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).

10.3 The Company is not creating/recognizing deferred tax assets on unused tax losses.

12.2 Value of inventories of Raw Materials above is stated after provisions of ' 383 Lakhs (Previous year ' 602 Lakhs ) on slow moving stock. Further, ' 56 Lakhs (Previous year ' 11,348 Lakhs; shown as Exceptional Items under note 32) have been written off during the year based on physical verification conducted by the management.

12.3 Value of inventories of Work-In-Progress above is stated after provisions of ' 51 Lakhs (Previous year ' 101 Lakhs) for write down to net realizable value. Further, ' Nil (Previous year ' 1,525 Lakhs; shown as Exceptional Item under note 32) have been written off during the year. Further, Stock-in-trade amounting to ' 52 Lakhs (Previous year ' 1,535 Lakhs; shown as Exceptional Item under note 32) have been written off during the year based on physical verification conducted by the management.

12.4 For details of Inventories given as security against borrowing (Refer Note 17.2)

12.5 Raw Materials/Stores and Spares includes materials valuing ' 3,248 Lakhs (Previous year ' 3,787 Lakhs) lying in Bonded Warehouse/at Port as on 31st March 2023 which also includes ' 3,234 Lakhs imported in the earlier years. These inventories could not be released from the authorities due to non-payment of custom duty, other charges etc. The management does not expect any material loss on account of any obsolescence in these said stocks due to passage of time and no provision is considered necessary. Further ' 190 Lakhs (Previous year ' Nil) have been written off during the year on account of auction by Customs Authority.

In determining the allowances for credit losses of trade receivables, the Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected allowance for credit losses is based on the ageing of the receivables that are due and rates used in the provision matrix.

13.2 There are no debts due by the Directors or other officer of the Company or any of them severally or jointly with any other person or debts due by the firm or private companies respectively in which any Director is a partner or a Director or a member.

13.3 There are no unbilled receivable as on 31st March 2023 and 31st March 2022.

15.1 Rights, Preferences and Restrictions attached to Equity Shares

The Company has one class of Equity Shares having a par value of ' 10/- per share. Each Shareholder is eligible for one vote per share held. Shareholders are entitled to Dividend as and when proposed by the Board of Directors which is subject to the approval of the Shareholders in the ensuing Annual General Meeting. In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

17.1 As referred in Note 34, lenders have declared the loan facilities granted to the Company as NPA. Further, all lenders, except 2 banks, have recalled loan facilities granted to the Company and accordingly, the amount outstanding on the recall dates have become immediately due and hence, have been classified as current borrowings amounting to ' 3,814 Lakhs (Previous year Nil).

Current maturities of long term debt includes ' 256 Lakhs (Previous year ' 1,487 Lakhs) where recall notices have not been issued by the banks.

21.2 As referred to in Note No. 34, lenders have declared the loan facilities granted to the Company as NPA. The loan accounts have been downgraded on account of default/non-payment of principal/interest or continuous overdrawn cash credit limits. Due to this, some banks/ financial institutions have provided outstanding amounts including unapplied interest upto 31st March 2023 whereas some of the banks have provided outstanding amounts without unapplied interest. However, the management has provided for interest upto 31st March 2023 based on management's best estimates in case where interest was not applied by banks/Financial Institutions post NPA downgradation.

28.1 Employee Benefits

The Company has recognized, in the Standalone Statement of Profit and Loss for the year ended 31st March 2023 an

amount of ' 202 Lakhs (Previous year ' 318 Lakhs) as expenses under defined contribution plans.

Defined Benefit Plans

(A) Gratuity Fund

The Company makes periodic contributions to the Tractors India Limited Staff Gratuity Fund, a funded defined benefit-plan for qualifying employees administrated under a common Trust by the trustees of the said fund for the benefit of the employees of the Company.

Under the Gratuity plan, every employee is entitled to gratuity, being higher of the amount, calculated under the Company's plan (based on average salary of last 36 months and number of years of service, restricted to a maximum of 40 years) or calculations as laid down under the Payment of Gratuity Act, 1972. Gratuity is payable on death/ retirement/termination and the benefit vests after 5 year of continuous service.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation was carried out as at 31st March 2023.

(B) Superannuation Fund

(i) Certain eligible employees of the Company who had attained at least 45 years of age as on 01.04.2009 are entitled to Superannuation benefit under the Superannuation scheme (a funded Defined Benefit Plan under a common Trust- 'Tractors India Limited Superannuation Fund Scheme', being administered by the trustees of the said fund for the benefit of employees of the Company). Under the aforesaid benefit scheme the Company makes periodic contribution to the Superannuation Fund Scheme and a predetermined percentage of salary is paid as pension on retirement. The quantum of pension depends on the average basic salary of eligible employee during the last 36 months before retirement. The benefit vests to employees with 12 years of continuous service and attainment of 48 years of age on retirement/death/termination. The most recent actuarial valuation of plan assets and present value of the Defined Benefit Obligation of Superannuation Fund was carried out as on 31st March 2023

(ii) Employees who did not attain 45 years of age as on 1st April 2009 are under the purview of 'Defined Contribution Scheme' in respect of service rendered from 1st April 2009. The benefit of services rendered by these employees up to 31st March 2009 come under the purview of 'Defined Benefit Scheme' as indicated which is frozen as on 31st March 2009. Hence for this category of employees, the benefit of cessation of service will be :

a) amount accumulated by annual contribution of 15% of Basic Salary and

b) amount frozen as on 31st March 2009

(C) Provident Fund

The Company has two separate Trusts for the administration of the Provident Fund. The Company has an obligation to fund any shortfall on the yield of the trust's investments over the administered interest rates on annual basis. These administered rates are determined annually predominantly considering the social rather than economic factors. The Company has an obligation to fund any shortfall on the yield of the trust's investments over the administered interest rates on annual basis. These administered rates are determined annually predominantly considering the social rather than economic factors.

Risk Management

The Defined Benefit Plans expose the Company to risk of actuarial deficit arising out of investment risk, interest rate risk and salary cost inflation risk.

(a) Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to government/high quality bond yields; if the return on plan asset is below this rate, it will create a plan deficit.

(b) Interest 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.

(c) Salary 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.

(d) Longevity 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.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation was carried out as at 31st March 2023.

28.3 The basis used to determine overall expected rate of return on assets and the effect on major categories of Plan Assets is as follows:

The major portions of the assets are invested in PSU Bonds, State and Central Government Securities. Based on the asset allocation and prevailing yield rates on these asset classes, the long term estimate of the expected rate of return on the fund assets have been arrived at. Assumed rate of return on assets is expected to vary from year to year reflecting the returns on matching Government Bonds.

28.4 The estimate of future salary increases takes into account inflation, seniority, promotion and other relevant reasons.

28.5 Sensitivity Analysis

The Sensitivity Analysis below has been determined based on reasonably possible change of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant. These sensitivities show the hypothetical impact of a change in each of the listed assumptions in isolation. While each of these sensitivities holds all other assumptions constant, in practice such assumptions rarely change in isolation and the asset value changes may offset the impact to some extent. For presenting the sensitivities, 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 presented above. There was no change in the methods and assumptions used in the preparation of the Sensitivity Analysis from previous year.

Based on the findings of the Management audit report, and also considered by the Board of Directors in its meeting held on 13th September 2022, certain accounting adjustments have been carried out during the year ended 31st March 2022 to rectify those accounting mistakes/misstatements made in the books of accounts in the previous financial years. The cumulative impact of those rectifications/adjustments has been shown as an "Exceptional Item" in the Statement of Profit & Loss in previous F.Y. 21-22.

"Exceptional Item"as stated above represents the following accounting adjustments carried during the year ended March 2022.

A. In earlier years, loans amounting to ' 3,276 Lakhs & ' 1,200 Lakhs were received from the promoters/promoters group of companies and other lenders respectively which was wrongly credited to Inventories account instead of respective loan accounts. The same has been rectified by reinstating the respective loan accounts and inventory. The amount of inventory as reinstated above has been written off subsequently and shown as the exceptional item. Further certain loans amounting to ' 35 Lakhs as reinstated above has also been written back and grouped under exceptional item.

B. Based on the findings of the Management audit report, a difference of ' 11,109 Lakhs have been identified between the Inventory as shown in books of accounts and the inventory appearing in Material module in the ERP system as on

31st March 2022. Such difference comprises ' 4,476 Lakhs as mentioned in the point no. A above and further difference of ' 6,633 Lakhs owing to certain wrong accounting carried out. Hence such balances have been written off during the year to reflect the correct position of Inventory as on the Balance Sheet date.

C. During the previous year the management has also engaged an external party to physically verify its inventory and also to make a value assessment of inventory lying physically. Based on the findings of the surveyor's report (covering 59% of Inventory lying as on 28th February 2022 for the verification & value assessment), a sum of ' 3,299 Lakhs (including ' 282 Lakhs based on internal assessment) has been written off/provided for and also shown as exceptional item.

D. The Company had raised certain wrong sales invoices in earlier years. Trade receivables amounting to ' 14,394 Lakhs against such invoices as identified by the management auditors and further ' 2,980 Lakhs as identified by the management have been classified as irrecoverable. Further based on management's internal assessment on the recoverability of other trade receivables, additional balances amounting to ' 2,923 Lakhs have also been identified as irrecoverable. Hence a sum of ' 8,347 Lakhs (net of ' 5,830 Lakhs of further provision during the year and utilisation of ' 6,119 Lakhs out of provision made in earlier years) have been written off and shown as exceptional item.

E. The Company has been engaged into certain trading activities since financial year 2019-2020 and has been complying with all the requisite rules & regulations including "The Goods & Services Tax Act 2017”. During the first quarter ended 30th June 2021, certain bills of exchange were accepted by certain employees without receipt of supplies and the banks later recovered the money from the Company which has been debited to suppliers' accounts and shown as advances. Consequently, such advances to the tune of ' 3,232 Lakhs could not be recovered and hence a sum of ' 1,400 Lakhs has been written off and balance amount of ' 1,832 Lakhs has been provided for as an abundant precaution and shown as exceptional item.

33 The Company has not carried out Fair Valuation of interest free loans from the promoters/ promoter's group of companies and other lenders aggregating to ' 15,885 Lakhs as required under Ind AS-109 and its impact on Standalone Financial Statements has not been ascertained.

34 During the year, the Company has incurred a cash loss of ' 8,314 Lakhs (Previous year ' 41,699 Lakhs) during the year and its net worth is negative as on the Balance Sheet date. Moreover, the Company's current liabilities also exceed its current assets as at 31st March 2023. In view of the acute financial crisis faced by the Company, lenders have declared the loan facilities granted to the Company as a Non-Performing Asset (NPA). However, the lenders have also extended 'Holding on Operations' to the Company through a 'Trust & Retention Account' opened with the Lead Bank of the Consortium namely, Bank of India ('BOI'). Consequently, the lead bank, namely Bank Of India, has filed a petition under Section 7 of the IBC before the Hon'ble National Company Law Tribunal on 28th September 2022. The application is yet to be admitted. Meanwhile, the Board of Directors approved a resolution plan at its meeting held on 26th November 2022 which has been submitted with all of TIL's Consortium Bankers on 28th November 2022, which is currently under discussion. Considering these developments, the matter had been adjourned by NCLT from time to time; with the next date of hearing being 19th June 2023.

Though the above situation is indicative of a material uncertainty that may cast doubt on the Company's ability to continue as a going concern, but in view of the proposed strategic investment and proposed resolution plan together

with sales orders in hand, the management has concluded that the material uncertainties are expected to be mitigated and hence the Standalone Financial Statements have been prepared on a going concern basis.

35 As reported earlier, an enquiry by "Directorate of Revenue Intelligence & Enforcement” (DRI) has been ongoing since June 2021 in respect to certain trading transactions and other matters related to earlier years and the Company has since complied with the requirements of the DRI. On 7th November 2022, and 10th November 2022, the Company received an Investigation report of DRI dated 20th July 2022 from the GST Authority, together with certain demand intimations based on the Investigation report. These demand intimations were for FY 2019-20 and for FY 2020-21 for payment of tax/interest/penalty amounting to ' 928.90 Lakhs & ' 3,290.79 Lakhs respectively under Section 74(5) of the GST Act; and reply to such intimations had been filed by the Company on 17th January 2023. Subsequently, on 24th March 2023, Show Cause Notice - DRC-01 for FY 2019-2020 was issued u/s. 74(1) of the CGST/WBGST Act, 2017 to the Company. A personal hearing was held on 6th April 2023, pursuant to which certain clarifications were submitted by the Company on 17th April 2023. Also, a reply to the Show Cause notice was submitted to the GST Authorities on 8th May 2023. On the same day, i.e. 8th May 2023, an Order was issued by the GST authorities for tax, interest, and penalty adding to ' 958.97 Lakhs for FY 2019-20. The Company is of the view that the demand raised by GST authorities does not have merit, and hence an appeal against this order shall be filed before the prescribed Appellate Authority as per the provisions under Sec 107 of the CGST Act. In view of this, no provision is considered necessary by the management.

36 Trade Receivables, Advances to Suppliers, Trade Payable and Advances from customers amounting to ' 3,019 Lakhs (Previous year ' 2,610 Lakhs), ' 1,050 Lakhs (Previous year ' 1,008 Lakhs), ' 12,542 Lakhs (Previous year ' 9,284 Lakhs), and ' 3,494 Lakhs (Previous year ' 3,873 Lakhs) respectively were outstanding as on 31st March 2023. The Company could not get necessary confirmations from the respective parties due to prevailing situation of the Company. Further, the Company could not get confirmations for Loans from bodies corporate to the extent of ' 897 Lakhs (Previous year ' 865 Lakhs) lying outstanding as on 31st March 2023. However, the Company doesn't foresee any material impact on its Financial Statements due to such non receipt of confirmation.

Future cash outflows in respect of the above matters are determinable only on receipts of judgments/decisions pending at various forums/authorities. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company's financial position and result of operations.

37.3 Pursuant to final order passed by the Single Bench of Hon'ble Calcutta High Court, the Company has stopped paying Entry Tax on procurement of Indigenous and Imported Goods into West Bengal, with effect from 1st June 2013. The writ petition No. 922 of 2012 filed by TIL has been treated as disposed of in the High Court and the records thereof have been sent to the WB Taxation Tribunal. TIL has filed a petition before the West Bengal Taxation Tribunal. The related unpaid amount till 31st March 2023 is ' 632 Lakhs (31.03.2022 : ' 632 Lakhs).

38 INFORMATION GIVEN IN ACCORDANCE WITH THE REQUIREMENTS OF IND AS 108 ON SEGMENT REPORTING

The operations of the Company pertains only to Material Handling Solutions (i.e. manufacturing and marketing of various Material Handling Equipment namely Mobile Cranes, Port Equipment, Self Loading Truck Cranes, Road Construction Equipment, etc. and dealing in spares and providing services to related equipment). Further, the Company's principal geographical area of operations is within India. Accordingly, the Company has only one reportable segment as envisaged in Ind AS 108 on 'Segment Reporting' and information pertaining to segment is not applicable for the Company.

39 CAPITAL MANAGEMENT

The Company aims at maintaining a strong capital base maximizing Shareholders' wealth safeguarding business continuity and augments its internal generations with a judicious use of borrowing facilities to fund spikes in working capital that arise from time to time as well as requirements to finance business growth.

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 cash generated from operations, long term and short term borrowings from banks and financial institutions. On requirement, the Company also borrows from related and other parties to meet its financial needs.

However in view of certain adverse factors and challenges being faced by the Company over past few years as explained in Note 34, the net worth of the Company is eroded.

The capital structure of the Company consists of net debt (borrowings as detailed in Note 17 offset by cash and cash equivalents in Note 14-A, other bank balances in Note 14-B and deposits with banks including earmarked balances in Note 9A) and total equity of the Company.

Net debt includes interest bearing borrowings less cash and cash equivalents, other bank balances (including non-current earmarked balances).

40 FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES

This section gives an overview of the significance of Financial Instruments for the Company and provides additional information on Balance Sheet items that contain Financial Instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized in respect of each class of Financial Asset, Financial Liability and Equity Instrument are disclosed in Note 2.13 to the Standalone Financial Statements.

The management assessed that cash and cash equivalents, other bank balances, trade receivables, trade payables, other financial assets and other financial liabilities approximate their carrying amounts largely due to the short term maturities of these instruments. Lease liabilities have fair values that approximate to their carrying amounts as it is based on the net present value of the anticipated future cash flows.

B) Financial Risk Management Objectives

The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company continues to focus on a system-based approach to business risk management. The Company's financial risk management process seeks to enable the early identification, evaluation and effective management of key risks facing the business. Backed by strong internal control systems, the current Risk Management System rests on policies and procedures issued by appropriate authorities; process of regular reviews/audits to set appropriate risk limits and controls; monitoring of such risks and compliance confirmation for the same.

a) Market Risk

The Company's Financial Instruments are exposed to market changes. The Company is exposed to the following significant market risk:

Foreign Currency Risk Interest Rate Risk Other Price Risk

Market Risk Exposures are measured using sensitivity analysis. There has been no change to the Company's exposure to market risks or the manner in which these risks are being managed and measured.

Fair Value Hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at Fair Value, grouped into Level 1 to Level 3, as described below:

Quoted prices in an active market (Level 1): 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 includes derivative contracts.

Valuation techniques with observable inputs (Level 2): 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).

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are 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 are they based on available market data.

Derivatives 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 cash flow hedges and are entered into for periods consistent with foreign currency exposure of the underlying transactions.

The Company enters into foreign exchange forward contracts with the intention to reduce the foreign exchange risk of expected sales and purchases, these contracts are not designated in hedge relationships and are measured at Fair Value through profit or loss.

However, during the current and previous year, the Company has not entered into any forward contracts due to the current financial position of t he Company.

Interest Rate Risk

Interest rate risk refers to the risk that the Fair Value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The objectives of the Company's interest rate risk management processes are to lessen the impact of adverse interest rate movements on its earnings and cash flows and to minimise counter party risks.

All the borrowings availed by the Company have a fixed interest rate throughout the respective financial year. Further, the Company operates with banks having superior credit rating in the market.

* The Company's fixed rate borrowings are carried at amortised cost. They are therefore 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 changes in market interest rates. Further, all lenders have declared loan facilities granted to the Company as NPA and are not charging interest, hence, interest rate risk does not arise.

Price Risk

Equity price risk is related to change in market reference price of investments in equity securities held by the Company. The Fair Value of quoted investments held by the Company exposes the Company to equity price risks. In general, these investments are not held for trading purposes. The Fair Value of quoted investments in equity, classified as Fair Value through Profit & Loss as at 31st March 2023 is ' 10 Lakhs (31.03.2022: ' 8 Lakh).

b) Liquidity Risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting its obligations. The Company mitigates its liquidity risks by ensuring timely collections of its trade receivables, close monitoring of its credit cycle and ensuring optimal movements of its inventories. The table below provides details regarding the remaining contractual maturities of significant financial liabilities at the reporting date:

The management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.

The maturity analysis of undiscounted lease liabilities are disclosed under Note 5.3.

c) Credit Risk

Credit risk is the risk that counter party will not meet its obligations leading to a financial loss. The Company has its policies to limit its exposure to credit risk arising from outstanding receivables. Management regularly assess the credit quality of its customers, on the basis which the terms of payment are decided. Credit limits are set for each customer which are reviewed at periodic i ntervals.

III) Terms and Conditions of Transactions with Related Parties

a) The transactions with related parties have been entered at an amount which are not materially different from those on normal commercial terms.

b) The amounts outstanding are unsecured and will be settled in cash and cash equivalent. No guarantees have been given or received.

c) The remuneration of Directors is determined by the Nominations & Remuneration Committee having regard to the performance of individuals and market trends.

IV) In respect of the above parties, there is no provision for impairment/doubtful debts as on 31st March 2023 and no amount

has been written off or written back during the year in respect of debt due from/to them except as disclosed above.

V) The above related party information is as identified by the management.

43 Additional Disclosures Relating to the Requirement of Revised Schedule III

43.1 Loans or Advances (repayable on demand or without specifying any terms or period of repayment) to Specified Persons

During the year ended 31st March 2023 the Company did not provide any loans or advances which remains outstanding (repayable on demand or without specifying any terms or period of repayment) to specified persons (Nil as on 31st March 2022).

43.2 Relationship with Struck off Companies

The Company did not have any transaction with companies struck off during the year ended 31st March 2023 and 31st March 2022.

43.3 Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto Currency or Virtual Currency during the year ended 31st March 2023

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43.4 Utilization of Borrowed Fund & Share Premium

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 on behalf of the ultimate beneficiaries.

The Company has not advanced or lent 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.

43.6 The Company has not been declared as a wilful defaulter by any Banks or Financial Institutions or any other Lender.

43.7 The Company has used the borrowings from Banks and Financial Institutions for the specific purpose for which it was obtained.

45 In its Extraordinary General Meeting convened on 23rd December 2022, the Company has received Shareholders' Approval for the proposed strategic investment by issue of 7,496,592 (Seventy Four Lakh Ninety Six Thousand Five Hundred Ninety Two) equity shares of face value of ' 10 (Rupees Ten) per share at a price of ' 92.40 (Rupees Ninety Two and forty Paise) per share through Preferential allotment in favor of Indocrest Defence Solutions Private Limited pursuant to the provisions of Regulation 164A of the Securities and Exchange Board of India (Issue of Capital and Disclosure

Requirements) Regulations, 2018; and which is subject to approvals from appropriate authorities and lending institutions. Accordingly, the Stock Exchanges have also been informed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.

46 The Central Government has published The Code on Social Security, 2020 and Industrial Relations Code, 2020 ("the Codes”) in the Gazette of India, inter alia, subsuming various existing labour and industrial laws which deals with employees related benefits including post - employment. The effective date of the code and the rules are yet to be notified. The impact of the legislative changes, if any, will be assessed and recognized post notification of the relevant provisions.

47 The Standalone Financial Statements were approved by the Board of Directors on 26th May 2023.

48 The previous year figures have been regrouped/reclassified wherever necessary, to conform the current period's classification.