The Company's Investment properties consist of residential property given on rentals.

As at 31st March, 2023, the fair value of all properties is ' 538 Lakhs. These valuations are performed by Chartered Surveyors - AH Pandit & Associates, an accredited independent government registered valuer.

The fair value was derived using the market comparable approach based on recent market price without any significant adjustments beings made to the market observable data in the neighbourhood. Observed by the valuers for similar properties in the locality and adjusted basis on the valuer's knowledge of the factors specification to the respective properties. Fair valuation is based on market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. In estimating the fair value of properties, the highest and best use of the properties is their current use.

i The Company paid Final Dividend of ' 3/- per share (on fully paid up share of ' 2/- each) for FY 2021-22 in compliance with Section 123 of the Companies Act,2013 approved by the shareholders in the Annual General Meeting.

ii. Pursuant to the approval of the Board of Directors on 25th January 2023, the Company paid an interim dividend @ ' 2/- (previous year interim dividend @ ' 2/-) per equity share of the face value of ' 2/- each in compliance with Section 123 of the Companies Act,2013 to the Shareholders who were on the register of members as on 7th February 2023, being the record date fixed for this purpose.Interim Dividend absorbed a sum of ' 1,036.90 lakhs out of the net profits after tax for the financial year 2022-23.

iii. The Board of Directors have recommended a Final Dividend of ' 3.5/- per share (on fully paid up share of ' 2/-each) for FY 2022-23 in compliance with Section 123 of the Companies Act, 2013 and is subject to approval of shareholders in the ensuing Annual General Meeting.

Nature and purpose of reserves :

(a) Capital Reserve : During amalgamation, the excess of net assets taken, over the cost of consideration paid is treated as capital reserve.

(b) Capital Redemption Reserve : The Company has recognised Capital Redemption Reserve on buyback of equity shares from its retained earnings. The amount in Capital Redemption Reserve is equal to nominal amount of the equity shares bought back.

(c) Securities Premium : The amount received in excess of face value of the equity shares is recognised in Securities Premium. In case of equity settled based payment transactions, the difference between fair value on grant date and nominal value of share is accounted as securities premium.

(d) Retained Earning : Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

(e) FVTOCI Reserve: Gain / (Loss) on fair valuation of Non Current Investments classfied under FVTOCI

i. Term Loans from banks is secured by first parri passu charge over Plant and Machinery at plants located in Taloja, Maharashtra and Valia, Gujarat. Immovable fixed assets (Factory Land and Building) on the plant located at Taloja Maharashtra and second parri passu charge on stock, book debts and current assets of the Company. The credit facilities availed by the Company carry interest rate in the range of 5.45 % p.a. to 7.95% p.a.

ii. Term Loan have been applied for the purpose of capacity expansion of the plant and various other capex plans.

iii. Registration of charges or satisfaction with registrar of companies has been complied within the statutory period.

iv. Quarterly return/statement of current assets filed by the Company with bank are in agreement with the books of accounts. The Company has not been declared as willful defaulter by any bank or financial institution.

Term Loan Repayment:

Term Loan of ' 12,500 Lakhs, repayable in quarterly installments upto January 2028.

i. It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above Contingent Liabilities pending resolution of the respective proceedings, as it is determinable only on receipt of judgements/decisions pending with various forums/authorities.

ii. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as Contingent Liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.

iii. Income tax liability of ' 733.98 Lakhs ( FY 21-22'733.98 Lakhs ) is in respect of certain disallowances for R&D / Section 80IA Deductions/LTCG on Sales Office/ Depreciation on Rented Flats and some transfer pricing adjustments by Income tax authorities disputed by the Company

iv. Customs authorities have raised vide notice dated 22-07-2005 a demand and penalty of ' 142.09 Lakhs each for a dispute regarding high seas sale. The Company has paid the demand of ' 142.09 Lakhs in the FY 2011-12 and has claimed as deduction in the FY 2011-12. Balance penalty of ' 142.09 Lakhs has been disclosed as Contingent.

v. Order from GST department for FY 17-18 demand of ' 1,207.20 Lakhs in respect of ITC claimed not reflecting in GSTR 2A/Inconsistency in GSTR 1 and GSTR 3B for a month. Appeal filed with Commissioner Appeals with payment of demand ' 0.65 Lakhs and balance ' 1,206.55 Lakhs disclosed as Contingent.

NOTE 43: SEGMENT REPORTING

Operating segments are reported in a manner consistent with internal reporting provided to the Chief Operating Decision Maker (CODM) of the Company. The CODM who is responsible for allocating resources and assessing performance of the operating segments has been identified as the Managing Director of the Company. The CODM examines the Company's performance from a geographical perspective and has identified two of its following business as identifiable segments:

a. India

b. Outside India

NOTE 45: EMPLOYEE BENEFIT

a) Contribution to Defined Contribution Plan:

i) Employers Contribution to Provident Fund including contribution to Pension Fund amounting to ' 203.38 lakhs (Previous Year - ' 182.57 lakhs) has been included under Contribution to Provident and other Funds. (Refer Note - 33)

ii) Compensated absences:

The Company provides for encashment of leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits, for future encashment. The liability is provided based on the number of days of unutilized leave at each Balance Sheet date on the basis of an independent actuarial valuation.

iii) Superannuation:

The Company makes contribution to Superannuation Scheme, a defined contribution scheme administered by Insurance Companies. The Company has no obligation to the scheme beyond its annual contribution.

b) Contribution to Defined Benefit Plans: i) Gratuity:

The Company provides for gratuity as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. Amount of gratuity payable on retirement /termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied by number of years of service. The Company accounts for the liability for gratuity benefits payable in future based on an actuarial valuation.

These plans typically expose the Company to actuarial risks such as, Investment risk, Interest rate risk, longevity risk, salary escalation rate risk etc.

a) Investment risk:

The present value of defined benefit plan liability is calculated using a discount rate determined by reference to the market yields on government bonds denominated in Indian rupees. If the actual return on plan asset is below this rate, it will create a plan deficit.

b) Interest rate risk:

A decrease in the bond interest rate will increase the plan liability. However this will be partially offset by an increase in the return on plans debt investments.

c) 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 during their employment.

An increase in the life expectancy of the plan participants will increase the plan's liability.

d) Salary Escalation Rate risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As an increase in the salary of plan participants will increase the plans liability.

i. No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (“Intermediaries”).

ii. No funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (“Funding Parties”).

NOTE 47: FINANCIAL RISK MANAGEMENT

The Company's business activities are exposed to a variety of financial risks i.e. Liquidity risk, Market risks and Credit risk. The Company's senior management has overall responsibility for establishing and governing the Company's risk management framework.

The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the Company's risk management policies. The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Board of the Company.

a) Liquidity Risk:

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company has obtained fund and non-fund based working capital limits from its bankers.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet its daily operational needs. Any short-term surplus cash generated, over and above the normal requirement for working capital is invested in Bank Fixed deposits and Mutual funds, which carry minimal mark to market risks.

b) Market Risks:

Market risk is the risk of changes in market prices, liquidity and other factors that could have an adverse effect on realizable fair values of financial assets and financial liabilities and future cash flows to the Company. The Company's activities expose it to risk from movements in foreign currency exchange rates, interest rates, and market prices that affect its assets, liabilities and future transactions.

I) Foreign currency risk:

i. Potential impact of risk:

The Company undertakes transactions denominated in foreign currency and is thus exposed to foreign currency risk from transactions and translation.

The sensitivity of profit and loss to changes in the exchange rates arises mainly from un hedged foreign currency denominated financial instruments. The foreign exchange rate sensitivity is calculated for each currency by aggregation of the net foreign exchange rate exposure of currency and a parallel foreign exchange rates shift in the foreign exchange rates of each currency by 5% which represents Management's assessment of the reasonably possible change in foreign exchange rates.

II) Price risk:i. Potential impact of risk:

The Company is mainly exposed to the price risk due to its investments in equities & mutual funds. The price risk arises due to uncertainties about the future market value of these investments.

As at 31st March 2023, the investments in equities and mutual funds amount to ' 7,316.08 lakhs (as at 31st March 2022- ' 8,219.60 lakhs) which are exposed to price risk.

ii. Management policy:

The Company has laid policies and guidelines which it adheres to in order to minimize price risk arising from Investments in Equities & Mutual funds.

iii. Sensitivity to risk:

A 10% increase in prices would have led to approximately an additional ' 731.61 lakhs gain in the Statement of Other Comprehensive Income for the year ended 31st March 2023 (for the year ended 31st March 2022 ' 821.96 lakhs). A 10% decrease in prices would have led to an equal but opposite effect.

i. Potential impact of risk:

Interest rate risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk because the Company borrows funds at both fixed and variable interest rates.

As at 31st March 2023, the Company has variable rate borrowings to the extent of ' 12,337.62 lakhs (average borrowings for the year) (As at 31st March 2022, ' 3,779.58 lakhs).These are exposed to Interest rate risk.

ii. Management policy:

The risk is managed by maintaining an appropriate mix between fixed and floating rate borrowings. The Company has laid policies and guidelines which it adheres to in order to minimize the interest rate risk.

iii. Sensitivity to risk:

The sensitivity analysis has been determined based on exposure to interest rates at the end of reporting period. For floating rate liabilities, the analysis is prepared assuming that the amount of liability as on the end of reporting period was outstanding for the entire year. A 25 basis point increase or decrease is used when reporting interest rate risk internally and represents Managements assessment of the reasonable possible change in interest rates.

If Interest rates had been 25 basis point higher, the Company's profit would decrease by approximate ' 30.84 lakhs (For the year ended 31st March 2022, profit would decrease by ' 9.45 lakhs). A 25 basis point decrease in Interest rates would have led to an equal but opposite effect.

c) Credit Risk:

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of dealing with creditworthy counterparties and obtaining sufficient collateral, wherever appropriate,as a means of mitigating the risk of financial loss from defaults. Trade receivables consist of a large number of customers, across geographies, hence is not exposed to concentration risk. Ongoing credit evaluation is performed on the financial condition of its customers.

Level 1: Level 1 hierarchy included financial instruments measured using quoted prices. This included listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation techniques which maximize the use of observable market data. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.

The Company manages its capital to ensure that it will be able to continue as going concern while maximizing the returns to stakeholders through optimization of debt and equity ratios.

The Company determines the amount of capital required on the basis of annual budgets and three years corporate plan for working capital, capital outlay and long-term strategies. The funding requirements are met through internal accruals and a combination of long-term and short-term borrowings.

NOTE 51:The Company does not have any transactions not recorded in books of accounts that has been surrendered or disclosed as income during the year and previous year in the tax assessments under the Income Tax Act, 1961.

NOTE 52:The Company has not traded or invested in any crypto currency or virtual currency during the year and previous year.

NOTE 53:There has been no fraud by the Company or on the Company during the year and previous year.

NOTE 54: Previous year's figures have been have been regrouped / restated wherever necessary to confirm to current year's presentation.