In accordance with its accounting policy and past practice, the Company accrues revenue credits for urea subsidy claims pending notification/final acceptance by ‘Fertiliser Industry Coordination Committee’ (FICC), Government of India, in pursuance of the Pricing Scheme administered for nitrogenous fertilisers. The total amount receivable on account of such claims as on March 31,2023 is Rs 157.62 crores (Rs 312.86 crores on March 31,2022).

Necessary adjustments to revenue credits so accrued will be made on issuance of notification by FICC, Government of India.

30 Segment reporting

A. Operating segments and principal activities:

Operating segments are defined as components for which discrete financial information is available and whose results are reviewed regularly by the chief operating decision maker (CODM), for allocation of resources and assessing performance. Accordingly, the following segments have been identified as under: Fertilisers (manufacturing of urea), Chloro-Vinyl (manufacturing of poly-vinyl chloride, carbide and chlor alkali products), Shriram Farm solutions (Plant nutrients, seeds and pesticides), Sugar (manufacturing of sugar, ethanol and co-generation of Power), Bioseed (production of hybrid seeds), Fenesta building system (Windows and doors), Others (Cement, Rural retail and plaster of paris). Sale of power from the co-generation facilities set up for the operating segments is included in their respective results.

B. Geographical segments:

Since the Company's activities/ operations are primarily within the country and considering the nature of products/ services it deals in, the risks and returns are same and as such there is only one geographical segment.

C. Segment accounting policies:

In addition to the significant accounting policies applicable to the operating segments as set out in note 1.3, the accounting policies in relation to segment accounting are as under:

(i) Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on a reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

(ii) Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, trade receivables (net of allowances and provision), inventories and property, plant and equipments, which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consists principally of trade payables. Segment assets and liabilities do not include deferred income taxes. While most of the assets/ liabilities can be directly attributed to individual segment, the carrying amount of certain assets/ liabilities pertaining to two or more segments are allocated to the segments on a reasonable basis.

(iii) Inter segment sales:

Inter segment sales between operating segments are accounted for at market price. These transactions are eliminated in consolidation.

D. Revenue from major products:

Revenue from major products is given in note 59

F. Information about revenue from a single party exceeding 10% of the total revenue

Revenue from fertilizer subsidy income from ‘Fertiliser Industry Coordination Committee' (FICC), Government of India amounted to Rs.1,775.88 crores (31 March 2022 : Rs. 1,121.70 crores) arising from sales in the fertilizers segment, and has outstanding receivable of Rs. 310.22 crores as at 31 March 2023 (31 March 2022 : Rs. 434.88 crores).

(f) Major categories of plan assets

The plan assets at one of the unit are maintained with LIC of India Gratuity Scheme. The details of investment maintained by LIC are not available and have therefore not been disclosed.

(g) The Company expects to contribute Rs. 1.26 crores to the LIC fund during the year 2023-24 (previous year - Rs. 1.20 Crores).

(h) The average expected future working life of members of the defined benefit obligation as at March 31,2023 is 15.90 years (as at March 31,2022 15.63 years)

(b) Fair value

The fair value of the Company's investment properties as at March 31,2023 and March 31,2022 have been arrived at on the basis of a valuation carried out by government approved independent valuers. The inputs used in fair valuation are circle rate of the property, prevailing market price of the similar kind of property in that area and other relevant factors.

(c) The Company's leasing activities:

The Company has entered into lease agreements for lease of offices, showrooms, godowns etc., generally for a period of 6 months to 11 years with renewal option and which can be terminated after lock-in-period by serving notice period as per the terms of the agreements.

(d) In applying IndAS 116, the Company has used the following practical expedients:

- elected not to assess whether a rent concession that meets the conditions in paragraph 46B is a lease modification.

- Rs nil recognised as 'Other income' in statement of profit and loss for financial year ended March 31,2023 to reflect reduction in lease payments that arise from rent concessions to which the Company has applied the practical expedient (2021-22 - Rs 0.34 crores)

Further, BHP has converted the loan outstanding amounting to Rs.20.90 crores of DCM Shriram Limited into Equity share capital.

(ii) During the year, the Company received Rs 53.78 crores interest income (income tax impact : Rs 18.56 crores) relating to earlier years from Shriram Bioseed Ventures Limited. The same has been recognised in ‘Other Income’ in the standalone financial statements

40 Employee share based payments (refer note 12)

The Company has an Employees Stock Purchase Scheme (DCM Shriram ESPS) which is administered through DCM Shriram Employees Benefits Trust based on acquisition of shares from the market to provide equity based incentives to employees under the Scheme. The shares offered, lock-in-period and grant price may be different for different eligible participants and determined at the time of every grant of shares. The expenses related to the grant of shares under the Scheme is accounted for on the basis of the fair value (which equals to market price of the Company's share on date of grant less exercise price) of share on the date of grant and is amortized on a straight line basis over the lock-in period, if any.

44 Capital management

The Company endeavours to optimize debt and equity balance and provide adequate strength to the balance sheet. The Company monitors capital on the basis of debt equity ratio.

45 Financial risk management

The Company's activities expose it to various financial risks : Credit risk, Liquidity risk and Market risk.

45.1 Credit risk management

Credit risk arises from credit exposure to customers (including receivables and deposit), loans and other financial assets. The Company perform credit evaluation and defines credit limits for each customer/counter party. The Company also continuously reviews and monitors the same.

The provision for doubtful debts or provision for impairment of investments etc is made on case to case basis, based on the information related to financial position, past history/ageing and other relevant available information about the counterparty.

The Company also makes provision for lifetime expected credit loss based on its previous experience of provision/write off in previous years.

45.2 Liquidity risk management

(i) The Company manages liquidity by ensuring control on its working capital which involves adjusting production levels and purchases to market demand and daily sales of production and low receivables. It also ensures adequate credit facilities sanctioned from bank to finance the peak estimated funds requirements. The working capital credit facilities are continuing facilities which are reviewed and renewed every year.

45.3 Market Risk

a) The Company's operations are mainly in India and therefore rupee denominated, except the following:

- Foreign currency denominated loans (Long term & Short term)

- Imports of some raw material, stores & spares and capital equipments

- Export of finished goods

The Company follows a policy of keeping these liabilities/assets fully hedged against foreign currencies. Regarding interest rate fluctuation, it follows a policy of partial hedge.

Some of the rupee liabilities have interest linked to the bank's MCLR or Financial market benchmark rates and are subject to variation in such rates.

50 Hon'ble High Court of Allahabad vide its order dated February 12, 2019 has set aside and quashed the notification withdrawing the Sugar Industrial Promotion Policy 2004 (Policy). The State Government has filed special leave petition (SLP) with Supreme Court against the above said order. The Company has not accrued the benefits consequent to the above said order due to uncertainties of the amount and the collection thereof.

51 Information with repect to a joint venture is as under (refer note 3.1):

(a) In October 2021, the Company aquired 1,732,500 equity shares (entire 50% stake of JV Partner) of Shriram Axiall Private Limited (now Shriram Polytech Limited) from the JV Partner Axiall LLC USA, thereby making it a 100% subsidiary of the Company.

1. Net debt = Total borrowings - cash and cash equivalents - bank balances other than cash and cash equivalents (other than earmarked balances)

2. Earnings = Profit before tax ( ) Depreciation and amortisation ( ) Finance cost (-) interest and dividend income (-) net gain/(loss) on sale of current investments

3. Net finance charges = Finance cost (including interest capitalised on qualifying assets during construction period) (-) interest and dividend income (-) net gain/(loss) on sale of current investments

4. Average networth^(l) = On year end closing basis

(i) Net worth = Equity share capital other equity (excluding share held by trust under ESPS and cash flow hedging reserve)

5. Average inventory = On quarter closing basis*

6. Average trade receivables = On quarter closing basis*

7. Total purchases = Cost of raw material consumed Consumption of stores and spares Purchases of stock-in-trade Change in inventories of raw material and stores & spares

8. Average trade payables = On quarter closing basis*

9. Average working capital™ = On quarter closing basis*

(ii) Working capital = Current assets - Current liabilities

10. Average capital employed⁽ⁱⁱⁱ⁾ = On quarter closing basis*

(iii) Capital employed = Total assets [excluding Investments, Cash and cash equivalents, bank balances other than cash and cash equivalents (other than earmarked balances), Capital work in progress, Capital advances and Intangible assets under development] - Total liabilities [excluding total borrowings, Capital creditors and Deferred tax assets/(liabilities)(net)]

11. Profit before interest, depreciation and tax (EBIDTA) = Profit before tax ( ) Depreciation and amortisation ( ) Finance costs

* Opening and closing numbers are audited, while, quarter ended June, September, December numbers are based on unaudited books of accounts