A. Assets under construction :

Capital work in progress as at 31^st March 2024 comprises of expenditure incurred for construction of building and plant and machinery pertaining to Madhur Refinery and packing project of the Company of INR 311.52 million and this project is expected to be completed by 31^st March 2025.

The other costs comprise of expenditure incurred for contruction of plant and machinery and building including material procured for miscellaneous projects at other plants.

B. Capitalisation of borrowing cost :

During the previous year, the Company has capitalized borrowing costs related to ethanol expansion projects being undertaken at two manufacturing units of the Company, i.e., Athani and Munoli.

The above-mentioned capital expansion was financed by Bank. The amount of borrowing cost capitalised during the year is NIL (31^st March 2023: INR 187.30 million). The rate used to determine amount of borrowing costs eligible for capitalisation is NIL (31^st March 2023: 4.44%), which is the EIR of those specific borrowings.

C. Revaluation of land, buildings and plant, machinery and equipment :

During the year ended 31^st March 2022, the Company had appointed a registered independent valuer who has relevant valuation experience for valuation of property, plant and equipment in India of more than 10 years and is a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017, to determine the fair value of freehold land, building, plant and machineries and leasehold land (forming part of right of use assets). As an outcome of this process, during the year ended 31^st March 2022, the Company had recognised decrease in the gross block of freehold land of INR 47.35 million and leasehold land included under right of use assets of INR 58.71 million and increase in building of INR 2,036.10 million and plant and machineries of INR 1,743.72 million. The Company had recognised this increase within the revaluation reserve and statement of other comprehensive income.

The Company determined these fair values after considering physical condition of the asset, technical usability / capacity, salvage value, quotes from independent vendors. The fair value of land is determined using market approach and building, plant, machinery and equipment using Depreciated Replacement Cost (DRC). The DRC is derived from the Gross Current Reproduction / Replacement Cost (GCRC) which is reduced by considering depreciation.

D. Impairment assessment of CGU :

As per the requirements of Ind AS 36, the Company tests at the end of every reporting period, whether there is any indication that the property, plant and equipment may be impaired. If any such indication exists, the Company estimates the recoverable amount of the property, plant and equipment. When the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. There were no impairment indicators during the year ended 31^st March 2024.

Note 5 (a): Investment in subsidiaries are carried at cost in financial statements. Wherever indicators of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. The recoverable amount calculation is based on a DCF (Discounted Cash Flow) model. Value in use is calculated using cash flow projections covering a five-year forecast considering growth rate of 3%, applying a discount rate of 11.82% - 15.52% to the cash flow projections. During the year Company recognised an impairment allowance of INR 116.27 million in respect of its investment in Gokak Sugar Limited.

Note 5 (b):Board of Directors, at its meeting held on 24^th May 2022, approved the Scheme of Amalgamation of wholly owned subsidiaries namely Monica Trading Private Limited (MTPL), Shree Renuka Agri Ventures Limited (SRAVL), and Shree Renuka Tunaport Private Limited (SRTPL), with the Company. The merger of MTPL with the Company has been approved by NCLT, Mumbai Bench and a certified copy of NCLT order has been filed with ROC, Mumbai. However, being a composite application, the merger will be effective only on receiving approval from NCLT Bangalore for merger of SRAVL and SRTPL with the Company. The hearing of the Bangalore bench of NCLT is scheduled on 05^th June 2024.

Note 5 (c): The Board of Directors of the Company at its meeting held on 23^rd September 2023 approved the acquisition of Anamika Sugar Mills Private Limited ('Anamika') for a consideration of INR 2,355 million and to make an additional investment of INR 1,095 million in Anamika by way of a rights issue of equity shares. The said acquisition was completed on 06^th October 2023 and from that date, Anamika has become a wholly owned subsidiary of the company. Further, the allotment of the rights issue of equity shares of Anamika was completed on 11^th October 2023.

Deferred tax assets are recognised on unabsorbed depreciation since these losses do not have any expiry and will offset the deferred tax liability over the period when the deferred tax liabilities reverse. Deferred tax assets are recognized on carry-forward business losses and disallowances with finite life for allowance only to the extent that management projections provides evidence that these losses/disallowances could be recovered within the expiry period. Management assesses the recoverability of deferred tax assets created on business losses and finite life disallowances on an annual basis and significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits that would be available for set-off against these losses and disallowances, together with future tax planning strategies.

The Company has unabsorbed depreciation of INR 16,601.29 million (31^st March 2023: INR 16,122.20 million), unabsorbed business losses of INR Nil (31^st March 2023: INR 5,555.59 million) on which deferred tax asset has been created. The unabsorbed depreciation can be carried forward for indefinite period, whereas the unabsorbed business losses and the MAT credit entitlement can be carried forward for 8 years and 15 years respectively.

Based on the annual assessment performed by the management considering the changes in the business scenario for determining recoverability of deferred tax assets created, the Company has not created deferred tax assets on unabsorbed tax losses carried forward of INR 8,099.47 million (31^st March 2023: INR 2,635.11 million) and on unclaimed Section 94B disallowance of INR 2,928.90 million (31^st March 2023: Nil). The company has a history of losses and the Company does not expect to generate adequate taxable profits against which these losses/ disallowances are expected to be utilized. The Company neither has any taxable temporary difference nor any tax planning opportunities available that could partly support the recognition of these losses/disallowances as deferred tax assets as at the period end date. On this basis, the Company has derecognised deferred tax assets on the tax losses carried forward and Section 94B disallowances as stated above. The unabsorbed depreciation can be carried forward for indefinite period, whereas the unabsorbed losses can be carried forward for 8 years and will expire between financial year 2025-26 to 2029-30 and unabsorbed Sec 94B disallowence can be utilised within a period of 8 years and will expire in the financial year 2031-32.

No trade or other receivables are due from directors or other officers of the company either severally or jointly with any other person. Trade or other receivables due from firms or private companies in which any director is a partner or a director or a member is mentioned in note 41(C).

Trade receivables are non-interest bearing and are generally on terms of 7 to 60 days.

Terms/rights attached to equity shares

The Company has only one class of equity shares having face value of INR 1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend if any in Indian rupees.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Company has issued redeemable non-convertible debentures. Accordingly, the Companies (Share Capital and Debentures) Rules, 2014 (as amended), require the Company to create DRR out of profits of the Company available for payment of dividend. DRR is required to be created for an amount which is equal to 25% of the value of debentures issued over the life of debentures.

Equity Contribution from Parents :

During the year, Company had received waiver in respect of interest accrued on trade payables for purchase of raw sugar from its fellow subsidiary Wilmar Sugar Pte. Ltd. amounting to INR 62.58 million (31^st March 2023: INR 111.14 million). The Company accounted for these waivers as equity contribution from parent and has presented the same as a separate component of equity under other equity.

Changes in equity instruments :

Changes in equity instrument, represents reserves created in respect of investment in unquoted equity shares carried at Fair Value Through Other Comprehensive Income.

Revaluation reserve :

Revaluation reserve is credited when property, plant and equipment are revalued at fair value and debited for assets disposed off during the year or for depreciation charge for the year on revalued assets (net of taxes). The reserve is utilised in accordance with the requirements of Ind AS 16. During the year, the Company recognised amount of INR 20.23 million (31^st March 2023: INR 0.23 million) (net of deferred tax) as reversal of revaluation reserve on disposal of assets. During the year, the Company transferred depreciation charge of INR 757.70 million (31^st March 2023: INR 738.45 million) from retained earnings to revaluation reserve as per the requirements of Ind AS 16.

Retained earnings :

Retained earnings represents surplus/(deficit) earned from the operations of the Company.

Cost of hedging reserve :

The Company designates the forward element of foreign currency forward contracts as cost of hedging and accumulates this cost in the statement of other comprehensive income over the term of the contract. Such amount is amortised to the statement of profit and loss on a systematic basis over the term of the contract.

Note A: Repayment schedule of external commercial borrowings, term loans and non-convertible debentures is as follows:

a) The External Commercial Borrowings (ECB) was received from its holding company (Wilmar Sugar and Energy Pte. Ltd.) in the financial year 2020-21. The loan is repayable on maturity i.e., after 60 months from the date of last receipt of ECB. The maturity date is 27^th August 2025.

c) Term loans availed from First Abu Dhabi Bank, having maturity date of 12^th May 2026, are repayable in 20 structured quarterly instalments commencing from 12^th August 2021.

d) Term loans availed from DBS, having maturity date of 04^th May 2027, are repayable in 16 structured quarterly instalments commencing from 04^th August 2023.

e) Term loans availed from Standard Chartered Bank, having maturity date of 06^th June 2026, are repayable in 16 structured quarterly instalments commencing from 07^th September 2022.

f) During the year ended 31^st March 2024, the company has issued 9.45% non-convertible debentures (NCD) amounting to INR 2,850 million to DBS Bank. The NCDs are repayable on maturity, i.e., after 60 months from the date of disbursement. The maturity date is 04^th January, 2029.

Note B: Nature of Security/Guarantees

Secured Non-convertible debentures

1. Exclusive charge by way of mortgage / hypothecation on all the immoveable / moveable assets at Haldia & Panchaganga. Wilmar International Ltd. has also issued corporate guarantee for these debentures.

ECB Loans

1. First pari-passu charge by way of mortgage / hypothecation on all immovable / movable properties of the Company both present & future except assets at Panchaganga and Haldia which are exclusively charged to LIC.

2. First pari-passu charge for ECB Lender on all the current assets of the company both present and future.

Note C: Corporate guarantee

Corporate Guarantee of Wilmar International Limited towards term loan extended by First Abu Dhabi Bank, Standard Chartered Bank, DBS Bank and working capital loans (refer note 22) extended by Bank of America, Standard Chartered Bank, Ratnakar Bank Limited and DBS Bank India Limited aggregating to INR 25,162 million (31^st March 2023: INR 20,700 million).

The non convertible debentures are secured by corporate guarantee given by Wilmar International Limited.

Note D: The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

Note E: There are no borrowings availed from banks or financial institutions on the basis of security of current assets.

The government grant has been recognised on the interest subvention receivable by the company under the Scheme for Extending Financial Assistance to Sugar Mills for Enhancement and Augmentation of Ethanol Production Capacity approved by the Ministry of Consumer Affairs, Food and Public Distribution (Department of Food and Public Distribution).

a. The Company has not been sanctioned working capital limits in excess of INR 50 million in aggregate from banks or financial institutions during any point of time of the year on the basis of security of current assets.

Trade payables have credit period in range of 0 - 180 days and certain trade payable carry interest from BL date for payments.

For terms and conditions with related parties, refer note 41 (B).

For explanations on the company liquidity risk management processes, refer note 44.

Trade payable includes liabilities in relation to H&T payables for which SRSL has provided corporate guarantee to RBL Bank Limited of INR 750 million. (31^st March 2023: INR 2,000 million). The outstanding payable in relation to H&T payable is INR 703.71 million (31^st March 2023: INR 1,290.82 million).

Note 37: Earnings Per Share [EPS]

Basic EPS amounts are calculated by dividing the loss for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

i. Disputes pertaining to denial of cenvat credit on sugar cess, denial of cenvat credit on certain items used for fabrication of machinery, or for laying of machinery foundation or making of capital goods, demand under Rule 6(3) of the CENVAT Credit Rules, cenvat credit disallowed due to invoices being in the name of the head office and credit availed at plants and other matters

ii. Disputes related to disallowance of input tax credit due to mismatch in forms filed and retention of input tax credit by assuming dealers holding license to generate, distribute or transmit electricity and other matters.

iii. Disputes related to reversal of common credit as per rule 42 of CGST Rules, 2017, mismatch of ITC due to various reasons, proposed demand to levy tax on supply of ENA.

Litigations pertaining to short sanction of GST refund claim have not been considered as contingent liability, since the Company would get the credit in electronic ledger for the amount of refund that is rejected and thus, there would be no loss of asset for the Company on the outcome of this litigation, i.e, the Company would either get the refund or the Company would retain the credit in the electronic ledger.

iv. Disputes related to non-payment of Special Additional Duty (SAD) at the time of import of goods (which was subsequently paid by the Company along with interest) and duty levied on the imported goods on the context of wrong classification / availing incorrect exemption.

v. Litigations related to erstwhile Brazilian subsidiaries pertains to labour litigations of erstwhile Brazilian subsidiaries in which the Company has been made a party to these litigations, on account of economic group concept considered by the Lower Court in Brazil. The Company has paid deposits of INR 165.52 million as at 31^st March 2024 (31^st March 2023: INR 154.30 million) for contesting these judgements in Higher Court in Brazil which has been clubbed under "Amount paid under protests to government authorities" and this balance has been fully impaired in the books of accounts as at 31^st March 2024.

vi. Other matters mainly consist of litigations related to claims filed against customers / vendors for recovery of trade receivable / advance balances and other legal suits.

Note 39: Defined Benefit plans

The Company has a defined benefit gratuity plan. The Company's defined benefit gratuity plan is a final salary plan for employees, which requires contributions to be made to a separately administered fund.

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member's length of service and salary at retirement age. The gratuity fund is managed by the Life Insurance Corporation of India (LIC). The company's obligation in respect of gratuity plan is provided based on the acturial valuation. The company recognises acturial gains and losses immedaitely in other comprehensive income net of taxes.

Salary increases and gratuity increases are based on expected future inflation rates.

Risk to the plan

Following risks are associated with the plan:

A. Actuarial Risk

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:

Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption, then the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption, then the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

B. Investment Risk

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

C. Liquidity Risk

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign/retire from the company, there can be strain on the cash flows.

D. Market Risk

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

E. Legislative Risk

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

Actuarial Assumptions

Key actuarial assumptions are given below:

Discount Rate:

The rate used to discount other long term employee benefit obligation (both funded and unfunded) is determined by reference to market yield at the balance sheet date on high quality government bonds.

Salary Growth Rate:

This is Management's estimate of the increases in the salaries of the employees over the long term. Estimated future salary increases should take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

Rate of Return on Plan Assets:

This assumption is required only in case of funded plans. Interest income on plan assets is calculated using the rate used to discount the defined benefit obligation.

Mortality:

This assumption is based on the standard published mortality table without any adjustment.

*A description of methods used for sensitivity analysis and its limitations:

Sensitivity analysis performed by varying a single parameter while keeping all the other parameters unchanged. Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may vary if two or more variables are changed simultaneously.

The method used does not indicate anything about the likelihood of change in any parameter and the extent of the change if any.

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year-end are unsecured and settlement occurs in cash.

Letter of Comfort

Ultimate holding Wilmar International Limited has provided a letter of comfort to DBS Bank for the short term forward lines made available by the bank to the company.

Corporate guarantees

a. The Company has obtained corporate guarantees from Wilmar International Limited INR 25,612 million (31^st March 2023: INR 20,700 million) towards term loans, non-convertible debentures and working capital limits extended by banks.

# Impairment allowance of INR 8.47 million (31^st March 2023: INR 13.91 million) has been recognised during the year related to Interest receivable and same is disclosed under "Impairment for advances to vendors and others" note 35. Impairment allowance of INR 35.74 million (31^st March 2023: Nil) has been recognised during the year related to loan receivable and same is disclosed under "Impairment for advances to vendors and others" in note 35.

Impairment of amounts owed by related parties

As at 31^st March 2024, the company has accumulated impairment of INR 13,604.95 million (31^st March 2023: INR 13,560.74 million) against total gross amount owed by related parties of INR 17,194.47 million (31^st March 2023: INR 16,554.62 million).

This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Note 42: Hedging activities and derivatives

During the year ended 31^st March 2021, Company has obtained External Commercial Borrowings (ECB) from its Holding Company, Wilmar Sugar and Energy Pte. Ltd. amounting to USD 300 million. The Company is also exposed to certain foreign currency risks relating to its on-going business operations. The primary risks managed using derivative instruments are foreign currency risk.

The risk management strategy and how it is applied to manage risk are explained in note 44.

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 thus, these contracts are accounted as financial instruments without hedge accounting.

Derivatives designated as hedging instruments

Cash flow hedges Foreign currency risk:

Foreign exchange forward contracts are designated as hedging instruments in cash flow hedges of outstanding ECB loan which has been denominated in USD.

There is an economic relationship between the hedged items and the hedging instruments as the terms of the foreign exchange forward contracts match the terms of the hedged item. The Company has established a hedge ratio of 1:1 for the hedging relationships as the underlying risk of the foreign exchange are identical to the hedged risk components. To test the hedge effectiveness, the Company uses the hypothetical derivative method and compares the changes in the fair value of the hedging instruments against the changes in fair value of the hedged items attributable to the hedged risks.

The hedge ineffectiveness can arise from:

a. The counterparties' credit risk differently impacting the fair value movements of the hedging instruments and hedged items.

The Company is holding the following foreign exchange forward contracts designated as hedging instruments:

Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts. The fair value are classified under Level 3 Fair value hierarchy.

The following methods and assumptions were used to estimate the fair values

Fair value of the unquoted equity shares of National Commodity Derivative Exchange Limited(NCDEX) at FVTOCI has been estimated on the basis of market multiple method using the price to book value ratio of comparable quoted investments, adjusted for certain significant unobservable inputs like company specific risk and discount for lack of marketability.

The fair values of the Company's interest-bearing borrowings and loans are determined by using discounted cash flow method using discount rate that reflects the issuer's borrowing rate as at the end of the reporting period. The own non-performance risk as at 31^st March 2024 was assessed to be insignificant.

The Company enters into derivative financial instruments with various counterparties, principally financial institutions. Foreign exchange forward contracts are valued using valuation techniques, which employs the use of market observable inputs. The most frequently applied valuation techniques include forward pricing, using present value calculations. The models incorporate various inputs including the credit quality of counterparties and foreign exchange spot and forward rates. There was no change observed in counterparty credit risk to have any material effect on the hedge effectiveness assessment for derivatives designated in hedge relationships and other financial instruments recognised at fair value.

Note 44: Financial risk management objectives and policies

The Company's principal financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include investments, loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company is exposed to credit risk, liquidity risk and market risk. The Company's senior management oversees the management of these risks and the appropriate financial risk governance framework for the Company. The senior management provides assurance that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. The Board of Directors reviews and agrees for managing each of these risks.

Market risk

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 risk: interest rate risk, currency risk and other risks, such as equity price risk and commodity price risk.

Foreign exchange exposure and risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the ECB loan of USD 300 million availed from its holding Company Wilmar Sugar and Energy Pte. Ltd. and receivables and payables.

The Company manages its foreign currency risk for principal portion of ECB by hedging for a period of 4-6 months. When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions, the derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable or payable against operating activities.

At 31^st March 2024, the Company has fully hedged the foreign currency exposure related to principal portion of External Commercial Borrowing (ECB) loan for 4 to 6 months using foreign currency forward contracts and expects to roll-forward these hedges in the future periods to hedge the foreign currency risks.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long-term debt obligations with floating interest rates.

Commodity price risk

Commodity price in sugar industry is impacted by multiple factors such as international sugar price, government regulations, quantity of sugar production in the relevant period, etc. The Company has mitigated this risk by well integrated business model by diversifying into co-generation and distillation, thereby utilizing the by-products. The following table shows effect of changes in various commodity prices on the profit/(loss) of the Company.

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, thereby leading to a financial loss. The Company conduct thorough credit assessments before granting credit terms and limits to customers, who are then monitored closely for adherence. Company's export sales are executed against advance or receipt against submission of documents. The Company's domestic sugar sales are primarily made to corporate customers, who are provided credit terms after thorough credit assessments and thereby, credit default risk is not significant for these customers. Other domestic sugar sales are primarily made on receipt of advance amount before goods are dispatched. Further, ethanol is sold to public sector undertakings and power is supplied to corporations run by state government, thereby the credit default risk is significantly mitigated.

Trade receivables

Trade receivables are non-interest bearing and are generally on credit terms of 7 to 60 days.

An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on credit loss expected on the ageing of receivable balances (which is formulated based on past history of collections and existing business conditions). The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

The ageing analysis of the receivables (net of expected credit loss) has been considered from the date the invoice falls due.

Liquidity risk

The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, debentures, financial support from parent etc. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and debt maturing within 12 months can be rolled over with existing lenders.

Note 45: Capital management

For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of Company's management is to maximise shareholder's value.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no significant breaches in the financial and non financial covenants of any interest-bearing loans and borrowing in the current period.

The Company manages its capital structure and makes adjustments in light of changes in the financial condition.

*The interest rates were been changed from 9% to 11% during the current year.

The loans given to subsidiaries have been utilized for meeting their working capital requirements.

b) Investments made are disclosed in note 5.

c) Corporate guarantees given by the Company are disclosed in note 38(b).

Note 47: Leases Company as a lessee

The Company has lease contracts for various land, building and plant. Leases of land have a lease term of 30 years and 90 years, building generally 3 years and 5 years and plant 17 years and 30 years. The Company's obligations under its leases are secured by the lessor's title to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased assets.

The Company also has certain leases of building and leases of office with lease terms of 12 months or less and with lease value of less than INR 0.40 million. The Company applies the 'short-term lease' and 'lease of low-value assets' recognition exemptions for these leases.

Note 49: Other Statutory Information

(i) There are no proceedings initiated or are pending against the Company for holding any benami property under the prohibition of Benami Property Transaction Act, 1988 and rules made thereunder.

(ii) The Company does not have any transactions with struck off companies.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

(v) The Company 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) During the current year, below mentioned scheme of arrangement is approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013

(a) Board of Directors, at its meeting held on 24^th May 2022, approved the Scheme of Amalgamation of wholly owned subsidiaries namely Monica Trading Private Limited (MTPL), Shree Renuka Agri Ventures Limited (SRAVL), and Shree Renuka Tunaport Private Limited (SRTPL), with the Company. The merger of MTPL with the Company has been approved by NCLT, Mumbai Bench and a certified copy of NCLT order has been filed with ROC, Mumbai. However, being a composite application, the merger will be effective only on receiving approval from NCLT Bangalore for merger of SRAVL and SRTPL with the Company.

(ix) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

Note 50:

As per Ind AS 108 'Operating Segments' if a financial statement contains both standalone and consolidated financial statements, segment information is required to be disclosed only in the consolidated financial statements. Hence, the same is not given in standalone financial statement.

Note 51:

The Company has used two accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except that audit trail feature is not enabled for certain changes made using certain privileged/administrative access rights for one of the application and for two softwares, audit trail was not enabled for direct changes to database. Further no instance of audit trail feature being tampered with was noted in respect of accounting softwares where the audit trail has been enabled.