a. Debt includes current and non-current Lease Liabilities.

b. Earnings available for debt service = Net Profit after taxes Non-cash operating expenses Like depreciation and other amortisations interest other adjustments like loss on sale of fixed assets etc.

c. Debt service includes lease payments for the year. It excludes working capital repayment (if any) during the year.

d. Capital Employed = Tangible net worth Total debt

e. Trade payables include provision for expenses.

f. Income generated from investments include interest income, net gain on sale of investments and net fair value gain.

Explanation for variances exceeding 25%

i. Usage of fund towards acquisition of subsidiaries has majorly resulted into decrease in the ratio.

ii. Debt-equity ratio has improved majorly on account of repayment of borrowings and payment of lease rentals.

iii. Increase in the ratio is mainly on account of increased business operations.

iv. Revenue growth and reduction in working capital due to point i. above resulted in increase in the ratio.

v. Return on investment increased due to external market conditions and interest rate movement during the year ended 31 March 2023

44 Segment information

Where a financial report contains both consolidated financial statements and separate financial statements of the parent, segment information needs to be presented only in case of consolidated financial statements. Accordingly, segment information has been provided only in the consolidated financial statements.

45 Business combinationScheme of Merger of Impact Automotive Solutions Limited

The Board of Directors of the Company at its meeting held on 26 July 2019 had approved the Composite Scheme of Arrangement (the ‘Scheme’) for merger of Impact Automotive Solutions Limited (‘Transferor Company’), wholly owned subsidiary of the Company with the Company. Application seeking approval of the Scheme was subsequently filed with Hon’ble National Company Law Tribunal (NCLT), Mumbai Bench on 27 September 2019.

On receipt of the certified copy of the order dated 15 June 2021 from NCLT, Mumbai Bench sanctioning the Scheme, with appointed date 1 April 2019, and upon filing the same with Registrar of Companies, Maharashtra on 22 June 2021 the Scheme became effective. Accordingly, the Company had given effect to the Scheme from the Appointed date of 1 April 2019 by revising the standalone financial statements for the year ended 31 March 2020 and 31 March 2021.

Pursuant to the Scheme, all the assets, liabilities, reserves and surplus of the transferor company had been transferred to and vested in the Company with effect from the appointed date at their carrying values.

Pursuant to the approved Scheme of Merger by Absorption, the Transferee Company has accounted for merger in its books as per the applicable accounting principles prescribed under relevant Indian Accounting Standards.

a) Accounting Treatment

i. The Transferee Company had recorded all the assets, liabilities and reserves of the Transferor Company vested in it pursuant to this Scheme, at their book values and in the same form as appearing in the books of the Transferor Company as on the Appointed Date, by applying the principles as set out in Appendix C of IND AS 103 ‘Business Combinations’ and prescribed under Companies (Indian Accounting Standards) Rules, 2015 issued by the Institute of Chartered Accountants of India.

ii. The financial statements of the Transferee Company reflect the financial position on the basis of consistent accounting policies.

iii. Any loans, advances or other obligations (including but not limited to any guarantees, letters of credit, letters of comfort or any other instrument or arrangement which may give rise to a contingent liability in whatever form) that were due between the Transferor Company and the Transferee Company, if

any, ipso facto, stand discharged and come to end and the same was eliminated by giving appropriate elimination effect in the books of account and records of the Transferee Company.

iv. Investments in shares of the Transferor Company held by the Transferee Company had been adjusted against Share Capital of the Transferor Company and the difference, between cost of investment of the Transferor Company in the books of the Transferee Company had been adjusted against balance of reserves and surplus of the Transferee Company post-merger.

v. The identity of the reserves had been preserved and appear in the financial statements of the Transferee Company in the same form in which they appeared in the financial statements of the Transferor Company.

d) As a consequence of the aforesaid merger, the Company recognized tax benefits accrued amounting to H 11.62 million directly under equity as at 1 April 2019. Tax benefits amounting to H 9.92 million and H 57.06 million are recognized under the revised statement of profit and loss for the financial year ending 31 March 2020 and 31 March 2021 respectively.

e) The authorised share capital of the Transferee Company, automatically stands increased, by clubbing the authorised share capital of the Transferor Company which was H 1,500.00 million divided into 150 million equity shares of H 10 each.

46 Investment in PathPartner Technology Private Limited

Effective 1 October 2021, the Company had acquired the controlling stake in PathPartner Technology Private Limited (“PathPartner”). PathPartner is engaged in design service and solution provider for Automotive, Camera, Internet of Things (IoT), Multimedia devices, Driver Monitoring Systems, Asset tracking platform, Camera module platform and several re-usable IP building blocks. PathPartner is an Indian company which currently employs 350 people including 290 embedded software engineers. It is headquartered in Bengaluru, with R&D centers in Kochi, India, California, USA and a office in Frankfurt, Germany.

The total cash consideration for the controlling stake in PathPartner was H 890.00 million. The purchase consideration of H 147.49 million is outstanding to be payable to the Tranche 1 shareholders as at 31 March 2023.

Further, the Share Purchase Agreement also provided for an acquisition of the balance stake under Tranche 2 and Tranche 3. Accordingly, during the previous year, the Company had recognised a contractual obligation of H 871.84 million towards the said acquisition. During the current year, the Company has acquired the stake under Tranche 2.

49 Additional regulatory information pursuant to the requirement in Division II of Schedule III to the Companies Act 2013

(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 has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

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

(v) The Company (other than as mentioned in note 48) 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 on behalf of the Ultimate Beneficiaries

(vii) 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 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) The Company has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with the books of accounts.

(ix) None of the entities in the Company have been declared wilful defaulter by any bank or financial institution or government or any government authority.

(x) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(xi) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

50 The Company has established a system of maintenance of information and documents as required by the transfer pricing legislation under Section 92-92F of the Income Tax Act 1961. The Company is in the process of updating the documentation for the financial year 2022-2023.

The management is of the opinion that international transactions are at arm’s length and accordingly the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expenses and that of provision for taxation.