(B) Intangible assets under development completion schedule as at March 31, 2024 and March 31,2023

As on the date of the financial statements, there are no intangible asset under development projects whose completion is overdue or has exceeded the cost, based on approved plan and thus completion schedule is not given.

(i) Loans due by directors or other officers of the company or any of them either severally or jointly with any other persons or amounts due by firms or private companies respectively in which any director is a partner or a director or a member : Nil for March 31,2024 and March 31,2023 Loans or advances in the nature of advances to promoters, directors, KMPs or related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person: Refer note no. 11

In determining the allowance for trade receivables the Company has used practical expedients based on ageing of the customer receivables, over-dues and historical experience of collections from customers. The concentration of risk with respect to trade receivables is reasonably low as most of the customers are long standing and Corporate organisations, though there may be normal delay in collections.

(i) There are no loans due by directors or other officers of the company or any of them either severally or jointly with any other persons or amounts due by firms or private companies respectively in which any director is a partner or a director or a member.

(ii) There are no loans or advances granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are:\

(a) repayable on demand; or

(b) without specifying any terms or period of repayment.

Terms/rights attached to equity shares

The Company has one class of Equity shares having a par value of INR 10/- each. Each holder of Equity shares is entitled to one vote per share The Equity shareholders are also subject to restrictions as prescribed under the Companies Act,2013. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in the case of Interim Dividend.

In the event of the Liquidation of the Company, the holders of the Equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts and preferential shareholders.

GODAVARI BIOREFINERIES LIMITED

Notes To Standalone Financial Statements For The Year Ended March 31,2024

(a)

Under the erstwhile Companies Act, 1956, a general reserve was created through an annual transfer of net profit at a specified percentage in accordance with applicable regulations. Consequent to the introduction of the Companies Act, 2013, the requirement to mandatory transfer a specified percentage of net profit to general reserve has been withdrawn.

(c) Retained Earnings* (Amount in INR Lakhs)

Items of Other Comprehensive Income directly recognised in Retained Earnings

* Retained earnings includes Revaluation Reserve of INR 23,469.99 for the year ended March 31,2024 and INR 23,469.99 Lakhs for the year ended March 31,2023 respectively and it is not available for distribution of dividends. The Revaluation Reserve was created net of tax at the date of transition to Ind AS, i.e. April 01,2017 for revaluation of Land at fair value.

(d) Capital Redemption Reserve (CRR)

Represents reserve created during redemption of preference shares and it is a non-distributable reserve.

15. BORROWINGS (Amount in INR Lakhs)

B. Nature of Securities:

Loan under Sr 1: First Pari Passu Charge on Property, Plant & Equipment of Sameerwadi, Karnataka and First Pari Passu Charge on one Asset of Somaiya Properties and Investments Pvt Ltd.(SPIPL) (Formerly known as The Godavari Sugar Mills Pvt Ltd ) as corporate guarantee. Second paripassu on Current asset of Sugar divn, Sameerwadi, Karnataka.

Loan under Sr 2: First Pari Passu Charge on Property, Plant & Equipment of Sameerwadi, Karnataka and First Pari Passu Charge on one asset of Somaiya Properties and Investments Pvt Ltd.(SPIPL) (Formerly known as The Godavari Sugar Mills Pvt Ltd ) as corporate guarantee. Second paripassu on Current asset of Distillery divn, Sameerwadi, Karnataka

Loan under Sr 3 & Sr 11: First Pari Passu Charge on Property, Plant & Equipment of Sameerwadi, Karnataka and Second Pari Passu charge on Current Asset of Sugar Division at Sameerwadi,Karnataka.

Loan under Sr 4: First Pari Passu Charge on Property-Land& Building only at Sakarwadi, Maharashtra and First exclusive charge on asset of research center at Mahape,Maharashtra and one asset of SPIPL. First charge on Power receivables at Sameerwadi, Karnataka

Loan under Sr 5: Exclusive charge on boiler P&M assets, and First paripassu charge on Land and bldg at Sakarwadi unit.

Loan under Sr 6: Second subservient Pari Passu Charge on Property, Plant & Equipment of Sameerwadi, Karnataka and Second subservient Pari Passu charge on Current Asset of Sugar Division at Sameerwadi, Karnataka.

Loan under Sr 7: First Pari Passu Charge on Property, Plant & Equipment of Sameerwadi, Karnataka and Second Pari Passu Charge on one asset of Somaiya Properties and Investments Pvt Ltd.(SPIPL) (Formerly known as The Godavari Sugar Mills Pvt Ltd ) as corporate guarantee. Second paripassu on Current asset of Sugar and Distillery divn, Sameerwadi, Karnataka

Loan under Sr 8: Second subservient Pari Passu Charge on Property-Land& Building only at Sakarwadi & Boiler equipment at Sakarwadi, Maharashtra and Second subservient charge on asset of research center at Mahape, Maharashtra and one asset of SPIPL. Second subservient charge on current assets of Sakarwadi, Maharashtra and on Power receivables, Sameerwadi

Loan under Sr 9: Second subservient Pari Passu Charge on Property, Plant & Equipment of Sameerwadi, Karnataka and Second subservient Pari Passu Charge on one Asset of Somaiya Properties and Investments Pvt Ltd.(SPIPL) as corporate guarantee and Second subservient Pari Passu charge on Current Assets of Sameerwadi unit, Karnataka.

Loan under Sr 10: Second subservient Pari Passu Charge on Property, Plant & Equipment of Sameerwadi, Karnataka, and Second subservient Pari Passu Charge on one Asset of Filmedia Communication Systems Pvt Ltd & one asset of Somaiya Properties & Investments Pvt Ltd (SPIPL) as Corporate Guarantee, and Second subservient pari passu charge on Current assets of Sameerwadi unit, Karnataka

The Company has not made any default in repayment of principal and interest as stipulated.

The Company has avail interest free purchase tax loan from Government of Karnataka, however the repayment schedule still to be informed. In view of this same has been classified under Non Current Liability.

Interest for above loans varies from 9.25% to 11.25% (Previous Year 7.95% to 11%).

D. Nature of Security:

* Secured by First Pari Passu charge over current assets of the respective division/unit, both present and future and second Pari Passu charge on Plant & Equipment of respective division; and Second charge on one Asset of Somaiya Properties and Investments Pvt Ltd. (SPIPL) (Formerly known as The Godavari Sugar Mills Pvt Ltd ) as a Corporate Guranatee of SPIPL.

Interest for above Cash credit Rupee loans varies from 9.5% to 11.25% (Previous Year 8.95% to 10.80% ) Interest for above Public deposit varies from 8.50% to 9.50% (Previous Year 9.00 % to 10.00%)

(i) The maturity analysis of lease liabilities are disclosed in Note 38.

(ii) The effective interest rate for lease liabilities is 11.25 %.

(iii) Rental expense recorded for short-term leases was INR 179.09 Lakhs (Previous year : INR 177.73 Lakhs) for the year period ended March 31,2024.

(iv) The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Critical judgements in calculating amounts

The company has recognised revenue amounting of INR 1,67,545.87 Lakhs for March 31,2024 and INR 2,00,028.13 Lakhs for March 31,2023 from sale of products net of trade discounts .

(i) Leave Encashment

The leave obligations cover the company's liability for sick and earned leave.

The amount of the provision of INR 401.85 Lakhs (March 31,2023: INR 341.88 Lakhs) is presented as current, since the company does not have an unconditional right to defer settlement for any of these obligations.

(ii) Post Employement obligations a) Defined benefit plans - Gratuity

The company provides for gratuity for employees in india as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of five years are eligible for gratuity. The 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 gratuity plan is a funded plan and the company makes contributions to recognised funds in India. The company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

The payments of expected contributions to the defined benefit plan is INR 279.02 lakhs for March 31, 2024 (March 31, 2023: INR 262.77 lakhs)

The average duration of the defined benefit plan obligation at the end of the reporting period is 8.34 years (March 31,2023: 8.19 years)

b) Defined contribution plans

The company also has defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the company is limited to the amount contributed and it has no further contractual nor any contructive obligation. The expense recognised during the year towards defined contribution plan is INR 454.07 Lakhs (March 31,2023: INR 438.53 Lakhs)

34. COMMITMENTS AND CONTINGENCIES A. Commitments

Capital Commitments

i. Council of Scientific & Industrial Research (CSIR)

The Company had taken financial assistance from the Council of Scientific & Industrial Research (CSIR) of INR 485 Lakhs to develop technology for manufacture of Polymer grade Lactic Acid. Before start of the project, assurance was given about the successful bench scale development and scalability of the process/technology by CSIR.

The project was not successful, and National Chemical Laboratory (NCL) / CSIR could not demonstrate the technology to make polymer grade Lactic Acid and the same was accepted by NCL and also a third party engineering firm appointed by CSIR.

CSIR had demanded the financial assistance back. Subsequently , CSIR had filed an Application for appointing Arbitrator before the Delhi High Court for initiating Arbitration process and the Company's response was that the same is time barred however the court had passed the judgement appointing Arbitrators . Thereafter the company had filed Special Leave Petition (SLP) in the Supreme Court. Supreme Court admitting SLP stayed Order of the Delhi High Court on condition of deposit of INR 100 Lakhs and the company have deposited INR 100 Lakhs during the Financial year 2019-2020. On 26th November 2021 Special Leave Petition was dismissed and by subsequent Order dated 17th December 2021 Company may apply to Arbitrator for refund of deposit. Till then it will be invested in Fixed Deposit of nationalised banks.

The company had received communication from CSIR, inviting comments for referring to the Arbritration. The Company had replied that it will prefer to have the arbitration by a sole arbitrator to be appointed mutually or by the Delhi International Arbitration Centre. The Company is now, waiting for further communication from CSIR regarding the proposed arbitrator for its consent.

ii National Green Tribunal

The Company was directed by Hon'ble NGT to complete bioremediation of affected land and water before 31.12.2019.

The Company filed an application for the extension of time.

The NGT by its Order dated 27.09.2021 had granted extension till 31.12.2023 for completing bioremediation and further directed to CPCB to impose conditions for bioremediation within one month from the date of the order. Thereupon, CPCB vide its letter dated 15.11.2021 had imposed the certain conditions along with ' 5 Millions Bank Guarantee, which the company had complied with. Now, the granted period has expired and the Company is waiting for the authorities to conduct the survey of the work done and issue it's report for further course of action.

III Sale of Extra Neutral Alcohol (ENA) to Bottling Plant

During F.Y 21-22 the company received notice from the office of “Asst Commissioner of Central Tax ( GST) BIJAPUR”, towards GST not paid for ENA supply for the period 07/2007 to 03/2021 and “Show Cause” notice from “Joint Commissioner of Central Tax & CX., Belagavi”, towards GST not paid for ENA supply for the period 07/2007 to 03/2021. The Company had submitted it's responses against both notices and was awaiting for further communication from offices. During the current year the company has received show cause notice from the office “Commissioner of Central Tax & CX., Belagavi”, with a demand towards GST of INR 4,684 Lakhs for ENA supply for the period July 2017 to March 2021. Against the show cause notice the Company submitted it's response on 26th March 2023 and was awaiting for further communication from the department.

The Company has sold ENA to various customers of IFL (Potable industry) without GST through Karnataka State Beverages Corporation Ltd (KSBCL) since implementation of GST. The Customers have interpreted that GST is not applicable to IFL (potable industry) and customers have volunteered and have given undertaking for reimbursement of any dues that maybe be levied by Government on account of GST if applied on account on sale of ENA.

Further Government of Karnataka clarified on 19/07/2017 that canalisation of ENA to bottling units for manufacture of liquor would be outside the purview of the GST.

The matter was referred to GST Council by Indian Sugar Mills Association in July 2017 and thereafter same was followed up by reminders from time to time, however, in view of difference of opinion, GST Council has referred the matter to Advocate General of India for his opinion.

On 7th October 2023, the GST Council recommended that ENA used for manufacture of alcoholic liquor for human consumption be kept outside applicability of GST. Now, the Company is waiting for clarity from the Government of Karnataka for the VAT applicable on the sales made of ENA in the aforementioned periods.

IV. Exit from Export Oriented Unit (EOU), Customs Revenue Audit (CRA) and Negative NFE:

The company got in principal approval for the submissions from the office of Asst. Development Commissioner SEEPZ Mumbai against the CRA audit observations vide order dated December 14, 2022. Furthermore,the Company received it's Final Exit Order from EOU scheme dated January 12, 2023, from the Office of Development Commissioner SEEPZ Mumbai wherein no dues or demands were from the competent authority. However, the Company had to execute a Legal Undertaking for exit from EOU scheme for payment of penalties as may be imposed upon the Company under FT (D & R) Act, 1992. The competent authority has not intimated any dues or demands till date and the company cannot quantify, if any.

V. Electricity Duty on captive consumption

On 13 April 2015, by notification, the Government of Maharashtra had increased the electricity duty levied on Captive Power consumed from 30 paise to 120 paise per unit which was challenged by Captive Power Producers Association before the Bombay High Court. The Bombay High Court vide its Order dated 5.7.2016 restrained the Govt. from taking any coercive action for recovery against the Petitioner or charging further interest until further order. Company has made provision of ' 308 Lakhs over the years on account of incremental duty of 90 paise which is unpaid. Interest on this unpaid amount is not ascertainable.

The Government of Karnataka, had increased the electricity duty levied on Captive consumption to @ 20 paise on the power generated and on auxiliary consumption to @5 paise with effect from 31.05.2016. Company has made provision of ' 376 Lakhs over the years on account of incremental duty which is unpaid. Interest on this unpaid amount is not ascertainable

VI. Cross Subsidy Surcharges to HESCOM

For captive use of power, there was a demand notice from Assistant Executive Engineer [Electrical] Hubli Electric supply company (HESCOM) Subdivision Mahalingapur, for INR 590.95 Lakhs towards Cross Subsidy Surcharges for Imported power from IEX (Indian Energy Exchange) for the period of 2013-2016.

On December 3, 2021, Karnataka Electricity Regulatory Commission (KERC) through common Order announced that cross subsidy charges are payable as per HT2A tariff, whereby the demand of the company INR 590.95 Lakhs for the company will reduce.

The Company filed a writ petition on February 28, 2022 in the Dharwad high court; to issue an appropriate writ order or direction declaring that HESCOM is not authorised to collect cross subsidy surcharge as the HESCOM does not have license to charge the same under the Electricity Act 2003 or any of the order or regulation passed.

The court had granted interim relief in favour of the Company. However, impugned Electricity (amendment) rules 2023 granted the license to HESCOM and render the said writ petition infructuous

The Company has challenged the Electricity amendment rules 2023 in the high court of Karnataka wide writ petition No 100449 date 24.01.2024. The hearing held on 11.03.2024 was adjourned due to a change in the bench next date of hearing yet to be pronounced.

VII. Custom Duty for import of Denatured Ethyl Alcohol

The company had received a show cause cum demand notice dated 24th June 2021 for payment of 480 Lakhs towards differential custom duty on import (Difference between 5% and 2.5%) of Denatured ethyl alcohol.

In July 2017, GST was introduced with a concessional of 2.5% duty. Accordingly, the company had been paying 2.5% duty instead of 5 %.

In February 2021 budget it is declared that alcohol to be imported @ 5% from date of budget with no clarification for the period GST i.e July 2017 till 2020 for concessional rate of duty. Company had started paying 5% duty from Feb 2021.

The Customs had challenged that 2.5% duty was applicable for excisable goods and the applicable duty is 5 %. Hence the differential of 2.5% is applicable for the period July 2017 to February 2021.

Industry had already appealed to the Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance, Department of Revenue in November 2020. CBIC had forwarded this matter to Jt Secretary TRU (Tariff Unit). The Company had received a letter dated 21st December 2021 from The Office of the Deputy/Assistant Commissioner of Customs Nashik demanding Bond,as security for 100 % of the Dispute amount ( ' 480 Lacs) and 10% of the dispute amount as Bank Guarantee for taking up the proceeding further. Accordingly, the company had submitted the Bond for 100 % for Dispute amount and Bank Guarantee of ?48.00 Lacs.

Dy. Commissioner of Customs, Nashik conducted a personal hearing 27.01.2022 and vide Order No 04/DC/Customs-Adj/2021-22 dated 28.02.2022 confirmed the demand of ' 480 Lakhs.

The Company filed an appeal before the Commissioner of Customs (Appeal), Nagpur against demand of Rs 480 Lakhs on 22.04.2022 and paid ' 36 Lakhs as amount under dispute as required at the time of filing the Appeal.

Commissioner of Customs (Appeal) conducted a personal hearing on 14.03.2023 and vide his order dated 03.05.2023 rejected the appeal.

Aggrieved by Commissioner's order the Company had filed Appeal before CESTAT on 01.08.2023 and is awaiting further communication.”

IX. Income Tax Order for Assessment Year 2021-22

Addition of INR 13,218.80 Lakhs on account of alleged suppressed sale sugar recovery

During the financial year 2022-2023 Income Tax scrutiny assessment for assessment year 2021-22 was completed wherein unusually exorbitant addition of INR 13,218.80 Lakhs was made to the income reported by the company in it's income tax return and a demand Order of INR 5,730.20 Lakhs including interest was raised on the Company. The addition had been made on the technical grounds that the company's sugar recovery is less than 10%. The assessing officer had not considered many aspects and information applicable and relevant to the company during the assessment. Furthermore, the assessing officer did not consider the tax credit available to the company and set-off of the depreciation losses carried forward from previous years.

The company submitted a rectification application to the Assistant Commissioner of Income Tax pointing out the apparent mistakes in the assessment proceedings and got the demand reduced to INR 2,754 Lakhs and got a stay on the demand.

The company had filed an Appeal before the Commissioner of Income Tax on 24.01.2023 against the Assessment Order.

The hearing through video conferencing was held on 21/02/2024 before CIT(A). Thereafter additional submission were called for which have been made and now order is awaited.

It is not practicable to estimate the timing of cash flows except Letter of Credits, in respect of matters stated above. Letter of Credits are due within three to six months”

* The figured reported in aboe table is summary of Remuneration and benefits as appearing under (ii) against individual name of the key personnel above

(vii) 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 interest free and settlement occurs in cash. The Company has given guarantee/security to the lenders of subsidiary company amounting to INR Nil Lakhs (March 31,2023: INR Nil Lakhs). For the year ended March 31,2024, the Company has not recorded any impairment of receivables relating to amount owed by related parties (March 31,2023: NIL). This assessment is undertaken each financial year through examining the financial position of the related party and market in which the related party operates.

36. SEGMENT REPORTING

A. For management purposes, the Company is organized into following four business units based on the risks and rates of returns of the products offered by these unit as per Ind AS 108 on ‘Operating Segment’ :

Sugar

Cogeneration (Green Power)

Bio based Chemicals Distillery

No operating segments have been agrregated to form the above reportable operating segment

The Managing Director (MD) monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the standalone financial statements. Also, the Company's financing (including finance costs and finance income) and income taxes are managed on a Group basis and are not allocated to operating segments.

Transfer prices between operating segments are on an arm's length basis in a manner similar to transactions with third parties.

The management assessed that the fair value of cash and cash equivalent, trade receivables, security deposits, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.

The fair values for loans and non current security deposits were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the Fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

The fair values of non current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

ii. Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measure at fair value. To provide an indication about the reliability of the inputs used in determing fair value, the company has classified its financial instruments into three levels prescribed under the accounting standard. An explanation of each level follows underneath the table:

iii. Fair value measurement

Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds 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 is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. 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 are not based on observable market data, the instrument is included in level 3. This is the case for unquoted equity shares.

There have been no transfers among Level 1, Level 2 and Level 3 during the period

iv. Valuation technique used to determine fair value

Specific Valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis

The fair value of unquoted equity instruments is not significantly different from their carrying value and hence the management has considered their carrying amount as fair value.

38. FINANCIAL RISK MANAGEMENT

The company's activity expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance of the company, derivative financial instruments, such as foreign exchange forward contracts, foreign currency option contracts are entered to hedge certain foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements.

(A) Credit risk

Credit risk is the risk that the counterparty will not meet its obligations leading to a financial loss. Credit risk arises from cash and cash equivalents, financial assets carried at amortised cost and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.

i. Credit risk management

To manage the credit risk, Company periodically assesses the financial reliability of customers; taking into account factors such as credit track record in the market and past dealings with the company for extension of credit to Customer. Company monitors the payment track record of the customers, restrict credit limited in SAP, credit rating etc. Concentrations of credit risk are limited as a result of the company's large and diverse customer base. Company has also taken advances and security deposits from its customers / agents, which mitigate the credit risk to an extent. Generally, term deposits are maintained with banks with which company has also availed borrowings.

ii. Provision for expected credit losses - Trade Receivables

The company follows ‘simplified approach' for recognition of loss allowance on Trade receivables.

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates.

iv. Provision for expected credit losses - Other financial assets

The carrying amount of cash and cash equivalents, loans, deposits with banks and financial institutions and other financial assets represents the maximum credit exposure. The maximum exposure to credit risk is INR 4138.39 Lakhs (March 31, 2023: INR 3,349.78 Lakhs ). The company does not expect credit loss on other financial assets.

(B) Liquidity risk

Liquidity risk is the risk that a company may encounter difficulties in meeting its obligations associated with financial liabilities that are settled by delivering cash or other financial assets. The table below provides undiscounted cash flows towards financial liabilities into relevant maturity based on the remaining period at the balance sheet to the contractual maturity date.

(C) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risk such as commodity price risk.

(i) Foreign currency risk

Foreign currency risk arises commercial transactions that recognised assets and liabilities denominated in a currency that is not Company's functional currency (INR). The Company has natural hedge of exports against import and any excess in import if any, is cover by forward contract.

(ii) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

The company's main interest rate risk arises from long-term borrowings with variable rates, which expose the company to cash flow interest rate risk.

During year ended March 31,2024 and year ended March 31,2023, the company's borrowings at variable rate were denominated in INR.”

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 a change in market Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased / decreased profit or loss by amounts shown below. This analyses assumes that all other variables, in particular, foreign currency exchange rates, remain constant. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The year end balances are not necessarily representative of the average debt outstanding during the year.

(iii) Inventory price risk

The company is exposed to the movement in price of principal finished product i.e sugar. Prices of the sugar cane is fixed by government. Generally, sugar production is carried out during sugar cane harvesting period from November to April. Sugar is sold throughout the year which exposes the sugar inventory to the movement in the price. Company monitors the sugar prices on daily basis and formulates the sales strategy to achieve maximum realisation. The sensitivity analysis of the change in sugar price on the inventory as at year end, other factors remaining constant is given in table below:

40. DISCLOSURE ON BANK/FINANCIAL INSTITUTION COMPLIANCES

Summary of reconciliation of monthly statements of current assets filed by the Company with Banks are as below :-

No vairance in statement submitted to banks and books of accounts

41. CAPITAL MANAGEMENT

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

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The company includes within debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents and other bank balances.

In order to achieve the objective of maximize shareholders value, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing borrowings that define capital structure requirements.

43. Cenvat credit Tuljabhavani SSK Ltd, Naldurg.

The company had taken the distillery of Tuljabhavani SSSK Ltd at Naldug, Maharashtra on a lease basis for three years upto June-2009. On the expiry of the lease, the company stopped production and surrendered the Central Excise registration certificate for the same. The company had carried forward and applied on March 28, 2012 for a transfer of CENVAT credit of ' 117.50 Lakhs lying in balance as on April 30, 2009 from the register of Tuljabhavani SSSK Ltd. to the register of Sakaradi unit of the company.A show cause notice (SCN) was issued to reject the request for a grant of permission to transfer credit lying as an unutilized balance in the CENVAT account.

The Assistant Commissioner of Central Excise & Customs, Nanded and rejected the company's submission and confirmed the said SCN.

Thereafter, The Commissioner of Central Excise and Service Tax, Aurangabad and Hon'ble Customs Excise Service Tax Appellate Tribunal (CESTAT), West Regional Branch, Mumbai have rejected company submissions and appeals.

The company has now filed an appeal before Hon'ble Bombay High Court, Aurangabad Bench on 18.04.2023 and are awaiting the hearing date for the matter.

44. e2e materials

The Company had made an investment of INR 134.65 Lakhs in a United States of America based company named as e2e Materials, INC. during the period April 2010 to July 2014. However, E2E Materials, INC. was dissolved on March 20, 2018 by the order of competent authority of United States of America. The Company had made a provision against the investment amount during period March 2015 to March 2016, as there was no expected returns or recovery against the investment made. The Company has submitted an application to UBI for reporting of disinvestment in E2E Materials, INC. due to dissolution on May 16, 2023 and awaiting response or confirmation from UBI along with applicable fees or demand under the LSF scheme of RBI.

*Excess CSR expenditure done in F.Y 2021-22 set off against shortfall of expenditure done in F.Y 2023-24 in accrodance with rule 7(3) of the Companies (CSR Policy) Rules, 2014.

46. Other statutory information

(i) . The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company

for holding any Benami property.

(ii) . The Company have not traded or invested in Crypto currency or Virtual Currency during reporting periods.

(iii) . The Company have 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

(iv) The Company have 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

(v) The Company does not have any 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).

(vi) The Company does not have any borrowings from banks and financial institutions that are used for any other purpose other than the specific purpose for which it was taken at the reporting balance sheet date.

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

(viii) The Company is not declared as a wilful defaulter by any bank or financial institution or other lender during the any reporting period.

(ix) The Company shall disclose as to whether the fair value of investment property (as measured for disclosure purposes in the financial statements) is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. Since, the Company does not have any investment property during any reporting period, the said disclosure is not applicable.

(x) Section 8 of the Companies Act, 2013 companies are required to disclose grants or donations received during the year. Since, the Company is not covered under Section 8 of the Companies Act, 2013, the said disclosure is not applicable.

(xi) There are no scheme of arrangements which have been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the reporting periods.

(xii) During the reporting periods, the Company does not have any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment granted to promoters, directors, KMPs and related parties as per the definition of Companies Act, 2013.

(xiii) The Company has not identified any transactions or balances in any reporting periods with companies whose name is struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

47. Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current period

classification