The aggregate amount of investment in bonds at purchase price is INR 5,10.98 lacs (March 31, 2023: INR 5,10.98 lacs)

The Company designated the investments shown above as debt instruments as FVTOCI because these debt instruments represent investments which are long term in nature and the Company intends to hold these investments till maturity.

1) Capital commitment:

a) Estimated amount of contracts remaining to be executed on capital account and not provided for in the accounts (net of capital advances): INR 2,56,95.32 lacs (March 31, 2023: INR 2,55,03.70 lacs)

b) Unpaid portion of subscribed equity capital in subsidiary: INR 47.50 lacs (March 31, 2023: INR 47.50 lacs)

2) Prepaid expenses include INR 898.19 lacs towards unamortised insurance premium on the drawn and undrawn external commercial borrowing from BpiFrance S.A., amounting to EURO 1,29,76,862.84.

Balance with statutory authorities represents goods and services tax (earlier service tax) paid on inputs (earlier input and services) availed by the Company and eligible for utilization towards discharge of goods and services tax (earlier service tax liability) in respect of services rendered by the Company. The Company expects the utilization of outstanding balances as at each date of standalone financial statements within twelve months thereof.

a) Share Capital Suspense comprises of 12 equity shares pending to be allotted as fully paid up to some non-resident equity shareholders without payment being received in cash in terms of Regulation 7 of Notification No. FEMA 20/2000 RB of May 3, 2000 (as amended) and 1 equity share of INR 10 pending to be allotted as fully paid to a non-resident share holder by way of bonus share in terms of RBI regulations.

c) Terms/rights attached to equity shares

The Company has issued only one class of equity shares having a face value of INR 10 per share. All Equity Shares carry one vote per share without restrictions and are entitled to Dividend, as and when declared. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, if any, in proportion to their respective shareholding. All shares rank equally with regard to the Company’s residual assets.

f) During the year ended March 31, 2024, the Company issued and allotted 8,20,000 equity shares of INR 10 each as fully paid-up bonus shares in the ratio of one equity share for every two equity shares to warrant holders on conversion of fully paid warrants to equity shares (previous year ended March 31, 2023: (a) 59,06,744 equity shares of INR 10 each as fully paid-up bonus shares in the ratio of one equity share for every two equity shares outstanding on record date, and (b) 1,64,000 equity shares of INR 10 each as fully paid-up bonus shares in the ratio of one equity share for every two equity shares to warrant holders on conversion of fully paid warrants to equity shares). There have been no other shares which has been issued for a consideration other than cash and no shares bought back by the Company during the period of 5 years immediately preceding the reporting date.

g) There are no options outstanding as at the end of the year.

h) Pursuant to a Qualified Institutions Placement (“QIP”), 13,62,397 fully paid-up equity shares were issued and allotted to 21 subscribers, at INR 1,101 (face value INR 10 plus premium of INR 1,091) per equity share, on February 29, 2024 (refer note 49) increasing the share capital by INR 1,36.24 lacs and the securities premium by INR 1,48,63.75 lacs.

Nature and purpose of reserves

a) Capital subsidy reserve

This represents the profit earned by the Company through a special transaction in the nature of a government subsidy that is not available for distributing dividend.

b) Securities premium

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with provisions of the Companies Act, 2013.

c) General reserve

General reserve is a distributable reserve created by way of transfer from time to time from annual profits. The reserve is utilised in accordance with provisions of the Companies Act, 2013.

d) Retained earnings

Represents the accumulated balances of profits earned over the years after appropriation for general reserves, and adjustments for dividends or other distributions paid to shareholders.

e) Money received against warrants

Represents amount received towards preferential allotment of convertible warrants issued.

a. Working Capital Term Loan from State Bank of India, under Guaranteed Emergency Credit Line 2.0 (GECL2.0) scheme, outstanding Nil (previous year: INR 11,00.90 lacs), carried interest linked to the bank’s MCLR, was repayable in (i) 47 monthly instalments of INR 33.33 lacs each starting from January 2022 & (ii) last instalment of INR 33.49 lacs in December 2025 and was secured by extension of second charge over the existing primary and collateral securities including mortgages created in favour of the Consortium banks on pari-passu basis and covered under guarantee coverage from National Credit Guarantee Trustee Company Ltd (NCGTC). The said loan has been repaid during the year.

b. Working Capital Term. Loan from Punjab National Bank, under GECL2.0 scheme, outstanding Nil (previous year: INR 1,40.62 lacs), carried interest linked to the bank’s MCLR, was repayable in (i) 35 monthly instalments of INR 6.38 lacs each commencing from February 2022 & (ii) last instalment of INR 6.70 lacs in January 2025 and was secured by extension of second charge over the existing primary and collateral securities including mortgages created in favour of the Consortium banks on pari-passu basis and covered under guarantee coverage from NCGTC. The said loan has been repaid during the year.

c. Working Capital Term Loan from Indian Bank, under GECL2.0 scheme, outstanding Nil (previous year: INR 2,89.67 lacs), carried interest linked to the bank’s MCLR, was repayable in 48 monthly instalments of INR 8.96 lacs each starting from April 2022 and was secured by extension of second charge over the existing primary and collateral securities including mortgages created in favour of the Consortium banks on pari-passu basis and covered under guarantee coverage from NCGTC. The said loan has been repaid during the year.

d. The above-mentioned term loans carried interest rate between 7.9 to 12 % per annum (previous year: 7.9 to 12 %).

e. External Commercial Borrowing (“ECB”) from BpiFrance S.A., in the nature of term loan, outstanding € 2,244,832.84 (excluding transaction cost of € 130,286.53), equivalent to INR 20,57.16 lacs (excluding transaction cost INR 109.04 lacs ), (previous year: Nil), carries annual interest at 3.845% and is repayable in 20 semi-annual instalments, commencing from May 2025, with interest, commencing from May 2024 as and when due, and is secured under BpiFrance Assurance Export credit guarantee;

f. Vehicle Loan of Nil (previous year: INR 29.98 lacs) carried interest at between 7 to 7.8 % per annum was repayable in 36 monthly instalment(s) commencing from date of disbursement, and was secured by hypothecation of specified vehicles. The said loan has been repaid during the year.

g. There has been no default in servicing of loans and interest due thereon during and as at the end of the year;

h. Pledge of 15% of promoters equity shareholding in the Company to further secure loans to the Company from Indian banks have been released by the banks;

i. Interest accrued and not due on above borrowings is Nil (March 31, 2023: INR 2.12 lacs).

a) Working Capital loans, repayable on demand, and bearing interest at the rate of between 8.75 to 10.75 % per annum are secured by first charge, ranking pari-passu, in favour of members of the Consortium of Banks, on all current assets of the Company, present and future, and second charge, ranking pari-passu with term lender banks, on the entire fixed assets of the Company, present and future, wherever situated.

b) There has been no default in servicing of loans and interest payable thereon during and as at the end of the year.

a) Trade payables are non-interest bearing and are normally settled within 90 days except for payments to MSME which are settled within 45 days. Refer note 46 for information on the Company’s credit risk management processes.

b) Acceptances include arrangements where operational supplies of goods and services are paid by banks on due date which are normally effected within a period of 90 days from the date of transaction.

c) Disclosures with respect to related party transactions is given in note 42.

d) Micro enterprises and small enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) have been identified by the Company on the basis of the information available with the Company and the auditors have relied on the same. Disclosure pursuant to MSMED Act on the amount due to micro and small enterprises is given below:

B) Details of Dividends:

Dividend of INR 2 per equity share of face value INR 10 each for the financial year ended March 31, 2023, was approved by shareholders at Annual General Meeting held on August 10, 2023 and was paid on August 22, 2023 with a total appropriation of INR 4,13.44 lacs.

The Board of Directors, at its meeting held on May 28, 2024, has recommended for approval by Members at the ensuing Annual General Meeting a dividend of INR 2 per fully paid-up equity share of INR 10 each for the financial year ended March 31, 2024, and which, if approved, would result in a cash outflow of INR 4,40.69 lacs.

39. Employee benefits

a) Defined Contribution Plan

The Company makes contribution towards provident fund and ESI for qualifying employees to government administered /approved funds wherein the Company is required to contribute a specified percentage of payroll cost to the schemes to fund the benefits. The Company has no further obligations beyond the periodic contributions.

The Company recognized INR 138.40 lacs (March 31, 2023: INR 98.04 lacs) towards provident fund contributions and ESI contribution in the Standalone Statement of Profit and Loss included in "Employee benefits expense" (note 34).

b) Defined Benefit Plan Gratuity

The Company provides for gratuity as per the Payment of Gratuity Act, 1972 or as per applicable Company rules, whichever is higher. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The Company accounts for the liability for gratuity benefits payable in future based on actuarial valuation.

The following table sets out the status of the gratuity plan, based on the actuarial valuation obtained in this respect and the amounts recognised in the Company’s standalone financial statements as at balance sheet date:

Gratuity is payable to the employees on death or resignation or on retirement at the attainment of superannuation age. To provide for these eventualities, the Actuary has used Indian Assured Lives Mortality (2012-14) Ultimate table.

These assumptions were developed by management with the assistance of independent actuarial appraisers. Discount factors are determined close to each year end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management’s historical experience.

(xi) The Company expects to contribute INR 50 lacs (2023-24: INR 1.75 lacs) to the funded plan during the financial year 2024-25. Provident Fund

Provident fund benefits provided under plans wherein contributions are made to an irrevocable trust set up by the Company to manage the investments and distribute the amounts entitled to employees are treated as a defined benefit plan as the Company is obligated to provide the members a rate of return which should, at the minimum, meet the interest rate declared by Government administered provident fund. A part of the Company’s contribution is transferred to Government administered pension fund. The contributions made by the Company and the shortfall of interest, if any, are recognised as an expense in standalone statement of profit and loss under employee benefits expense. During the current year the Company has recognised an amount of INR Nil (March 31,2023: INR 1,79.68 lacs) being the decline in market value of certain investments of the trust.

C. Other long term benefits:

The leave obligations cover the Company’s liability for earned leave. The liability towards compensated absences based on the actuarial valuation carried out by using projected accrued benefit method as reduced by the contribution to the plan assets resulted in a net liability of INR 4.54 lacs as on March 31, 2024 (net asset of INR 21.34 lacs as on March 31, 2023) which have been shown under “Current provisions” (March 31, 2023: “Other current assets”) in the Standalone Financial Statements.

40. Consortium lenders had retained a right to recompense for NPV loss that may have arisen on rescheduling of term loans (without sacrifice) effective April 1, 2016. During the year ended March 31, 2024, consortium banks exercised their right to recompense, notwithstanding the prepayment of outstanding loans in the previous year, and a sum of INR 202.00 lakhs was demanded and paid during the year. This payment has been disclosed as an exceptional item.

Note: The Hon'ble Supreme Court had in its judgement in February 2019 opined on the applicability of allowances that should be considered as forming part of basic wages for computing provident fund contribution. Management believes that there are interpretative challenges in the application of the judgement retrospectively and therefore has not considered any probable obligations for past periods while awaiting further directions/clarifications in the matter to assess any potential impact on the Company as no reliable estimate can yet be made.

B. Terms and conditions of transactions with related parties

The transactions with related parties are made in the ordinary course of business and 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. 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.

E. Related party relationships have been identified by the management and relied upon by the auditors.

43. Segment Information

The Company operates predominantly within a single reportable business segment i.e. Polymers Processing business and mainly in a single geographic segment i.e. India. There are no separate reportable business or geographic segments. The aforesaid is in line with review of performance and allocation of resources by the chief operating decision maker.

Revenue of INR 1,65,24.71 lacs (previous year: INR 1,73,54.77 lacs) was derived from two external customers each accounting for over ten percent of the revenue.

Areas selected from those identified and prescribed under the Companies Act, 2013. The Company has adopted a policy to support duly registered and qualified external bodies including NGOs or Government relief funds including through financial contribution. Activities supported during the current, and previous year, included promoting education/ special education, health-care, employment enhancing vocational skills especially among children, women and the differently abled.

vii) The Company does not carry any provisions for CSR expenses for the current year and previous year;

viii) The Company intends to carry forward the excess amount of INR 9.38 lacs spent during the year (2022-23: INR 17.46 lacs);

45. Fair Value Measurement

Financial instrument by category

All financial assets and liabilities viz. trade receivables, security deposits, cash and cash equivalents, bank balances other than cash and cash equivalent, interest receivable, trade payables, employee related liabilities and short term loans from banks, are measured at amortised cost.

Fair Value hierarchy

Financial assets and financial liabilities measured at fair value in the standalone financial statements are categorised into three Levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for identical financial instruments;

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly;

Level 3: if there are unobservable inputs for the asset or liability, then the instrument is included in level 3.

Valuation process and technique used to determine the fair value

i) Fair value through other comprehensive income

Investment in tax free bonds are valued at fair value which is based on direct and market observable inputs

ii) Fair value through profit and loss

Investment in equity shares are valued at fair value which is derived on the basis of income approach. In this approach, the discounted cash flow method is used to capture the present value of the expected future economic benefits to be derived from the ownership of these investments.

The management assessed that for current assets including security deposits, loans, cash and cash equivalents, trade receivables, other recoverable and borrowings, trade payables, other current financial liabilities, the fair values approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

(i) The Company has repaid all its term loans as on March 31, 2024 except ECB in the nature of term loan carrying fixed interest rate at 3.84% p.a. derived as EURIBOR plus margin (previous year: variable rate facilities which were subject to changes in underlying interest rate indices). The management believes that the carrying rate of interest on these loans are in close approximation from market rates applicable to the Company. Therefore, the management estimates that the fair value of these borrowings are approximate to their respective carrying values.

Note: Investment in subsidiary as at the close of year ended March 31, 2024 and March 31, 2023 respectively is carried at cost, per the exemption availed by the Company; hence not considered herein.

The carrying value of the amortised financial assets and liabilities approximate to the fair value on the respective reporting dates. ii) Risk management

The entity’s activities expose it to market risk, liquidity risk and credit risk. The entity board of directors has overall responsibility for the establishment and oversight of the entity’s risk management framework. “This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the standalone financial statements.

A. Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the entity. The entity’s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost. The entity continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

Credit risk arises from cash and cash equivalents, trade receivables, investment carried at amortised cost and deposits with banks and financial institutions.

Credit risk management Credit risk rating

The entity assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets:

i) Low credit risk; ii) Moderate credit risk and iii) High credit risk on financial reporting date

Based on business environment in which the entity operates, there have been no defaults on financial assets of the entity by the counterparty.

Assets are written off when there is no reasonable expectation of recovery, such a debtor declaring bankruptcy or a litigation decided against the entity. The entity continues to engage with parties whose balances are written off and attempts to enforce repayment. The entity does not have any of the debts which are recoverable.

Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.

Trade receivables

The Company closely monitors the credit-worthiness of the debtors through internal systems for corporate customers, thereby, limiting the credit risk. The Company assesses increase in credit risk on an ongoing basis for amounts receivable that become past due and default is considered to have occurred when amounts receivables become one year past due.

Plan assets

The Company has taken Group Gratuity Insurance Policy from LIC of India for funding of its employees benefit obligations, LIC of India generally invests in securities of high credit rating

Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes loans and advances to employees, security deposit and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are written defined limits.

Expected credit risk losses for financial assets other than trade receivables

Company provides for expected credit losses on loans and advances by assessing individual financial instruments for expectation of any credit losses. Since this category includes loans and receivables of varied natures and purpose, there is no trend that the Company can draw to apply consistently to entire population. For such financial assets, the Company’s policy is to provide for 12 month expected credit losses upon initial recognition and provides for lifetime expected credit losses upon significant increase in credit risk. The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature.

Expected credit loss for trade receivables under simplified approach

The Company recognizes life-time expected credit losses on trade receivables using a simplified approach, wherein Company has defined percentage of provision by analyzing historical trends of default. There have been no significant past due trade receivables as Company receives its significant revenue from selling to major customers directly, wherein there are very low or no chances of non-recoverabilitv. For the rest of operations there were no significant past due receivables.

B. Liquidity Risk

Ultimate responsibility for liquidity risk management rests with the Board of Directors of the Company. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows.

Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant groupings based on their contractual maturities for all non-derivative financial liabilities.

The amounts disclosed in the table are the contractual discounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

C. Market risk

Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar and Euro. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the functional currency of the Company. Considering that part of the borrowings are in foreign currency and also purchases are made in foreign currency, the Company’s exposure to foreign currency at each reporting date is disclosed herein.

Interest rate risk Liabilities

The Company’s policy is to minimise interest rate cash flow risk exposures on long-term financing. At March 31, 2024, the Company is exposed to changes in market interest rates through bank borrowings at variable interest rates. The Company’s ECB borrowings and the investments in Fixed Deposits bear fixed interest rates.

Assets

The Company’s fixed deposits are carried at amortised cost and are fixed rate deposits. 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 interest rate.

Capital management policies and procedures

For the purpose of the Company’s capital management, capital includes issued equity share capital and all other equity reserves attributable to the equity holders.

The Company’s capital management objectives are

- to ensure the Company’s ability to continue as a going concern

- to provide an adequate return to shareholders

Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure. This takes into account the subordination levels of the Company’s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

47. Leases

a. The Company has adopted Ind AS 116 -‘Lease’ from April 1, 2019, which resulted in changes in accounting policies in the standalone financial statements.

b. Practical expedients applied

The Company has used the practical expedients permitted by the standard:

- applying a single discount rate to a portfolio of leases with reasonably similar characteristics

- accounting for operating leases with a remaining lease term of less than 12 months as at April 1, 2019 as short-term leases.

c. The weighted average lessee’s incremental borrowing rate applied for the lease liabilities is 11.25%.

d. Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublet the asset to another party, the right-of-use asset can only be used by the Company. Leases are either non-cancellable or may only be cancelled by incurring a substantive termination fee. The Company is prohibited from selling or pledging the underlying leased assets as security. For lease over office building the Company must keep the property in a good condition of repair and return the property in the original condition at the end of the lease.

E. Contract asset is the right to consideration in exchange for goods or services transferred to the customer.

Contract liabilities are on account of the advance payment received from customers for which performance obligation has not yet been completed.

The performance obligation is satisfied when control of the goods or services are transferred to the customers based on the contractual terms. The Company does not have any remaining performance obligation as contracts entered for sale of goods are for a shorter duration. Further, there are no contracts for sale of services wherein, performance obligation is unsatisfied to which transaction price has been allocated.

Payment terms with customers vary depending upon the contractual terms of each contract and generally falls within 120 days from the completion of performance obligation.

49. a) Pursuant to the special resolution passed at the Extraordinary General Meeting held on December 29, 2021, and relevant regulatory provisions, the Company issued and allotted on January 11, 2022 by way of preferential allotment 19,68,000 warrants at a price of INR 762 each, each warrant carrying a right upon being fully paid-up within a period of 18 months from date of allotment to subscribe to one equity share of face value INR10 of the Company (including premium of INR 752 each). The Company received allotment money of INR 37,49.04 lacs, being 25% of the total warrant price in 2021-22. Promoter group warrant holders, holding 3,28,000 warrants exercised their option in full on payment of the balance 75% (INR 18,74.52 lacs) during 2022-23. Other warrant holders exercised their option in full on payment of the balance 75% (INR 93,72.60 lacs) during the year. As per the offer letter, the issue proceeds may be utilized for growth capital and expansion/ diversification requirements (whether organic or inorganic), to meet capital expenditure, to reduce borrowings, to enhance long-term resources and strengthen the financial structure, for meeting working capital requirements and for other general corporate purposes and purposes permitted by applicable laws. The proceeds of the said issue are being utilized for the purposes stated.

b) Pursuant to the special resolution passed at the Extraordinary General Meeting held on January 16, 2024, and relevant regulatory provisions, the Company issued and allotted on January 29, 2024 by way of preferential allotment 14,35,750 warrants at a price of INR 975 each, each warrant carrying a right upon being fully paid-up within a period of 18 months from date of allotment to subscribe to one equity share of face value INR10 of the Company (including premium of INR 965 each). The Company received allotment money of INR 48,99.50 lacs, being 35% of the total warrant price during the year. As per the offer letter, the issue proceeds may be utilized for Capital expenditure for expansion of capacity by adding new manufacturing lines for Dielectric and other technical grades of biaxially oriented polypropylene film, at the existing location in Barjora, West Bengal and in UAE directly or through subsidiary, including upgradation of the existing facilities, Working Capital of the Company and its subsidiaries and for other general corporate purposes and purposes permitted by applicable laws. The proceeds of the said issue are being utilized for the purposes stated.

c) Pursuant to the special resolution passed at the Extraordinary General Meeting held on January 16, 2024, and relevant regulatory provisions, the Company issued and allotted by way of a Qualified Institutions Placement (“QIP”), 13,62,397 fully paid-up equity shares to 21 subscribers, at INR 1,101 (face value INR 10 plus premium of INR 1,091) per equity share, on February 29, 2024. Issue expenses of INR 5,53.42 lacs have been adjusted with securities premium account. In terms of the offer documents, the issue proceeds may be utilized for Capital expenditure for equipment and machinery, pre-payment of outstanding borrowings, Working Capital, towards ERP system, and for other general corporate purposes. The proceeds of the said issue are being utilized for the purposes stated.

50. The management decided, during the year ended March 31, 2019, to sell or otherwise dispose non-core asset being Biax Division Unit 1, located at Barjora, Dist. Bankura, West Bengal, and subsequently obtained necessary shareholder approval. Accordingly, in terms of Ind AS 105 Non-current assets held for sale and discontinuing operations, the property, plant and equipment situated at Unit 1 Barjora were presented as ‘Assets held for sale’ separately from other assets in the balance sheet. The sale/business transfer was completed on October 20, 2022 at a consideration of INR 678 lacs for fixed assets. Accounting for the transaction resulted in an increase of other income by INR 85.75 lacs during the previous year ended March 31, 2023.

52. Significant events after the reporting period

The Board of Directors has recommended a dividend of INR 2.00 per share for the year 2023-24, (March 31, 2023 - INR 2.00 per share) subject to approval by the shareholders at the ensuing Annual General Meeting of the Company; No liability has been recognised as at March 31, 2024 (Nil as at March 31, 2023).

There were no other significant adjusting events that occurred subsequent to the reporting period other than events disclosed in the relevant notes.

53. The Ministry of Corporate Affairs (MCA) has issued a notification “Companies (Accounts) Amendment Rules, 2021” which is

effective from April 1, 2023, and which states that every company which uses accounting software for maintaining its books of account shall use only the accounting software where there is a feature of recording audit trail of each and every transaction, and further creating an edit log of each change made to books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled. The new requirement is applicable with effect from the financial year beginning on April 1, 2023.

The Company uses two accounting software for the maintenance of its books of account. During the current financial year, the audit trail (edit log) feature for any direct changes made at the database level was not enabled for one of the accounting software used for the maintenance of accounting records by the Company . However, the audit trail (edit log) at the application level (entered from the frontend by users) for the accounting software were operating for all relevant transactions recorded in the software.

Further, for another accounting software, the feature of recording audit trail (edit log) facility was enabled and the same has been operated throughout the year for all relevant transactions recorded in the software. However, the software did not capture the details of user id at the time of entering new record and in case of subsequent edits for the period April 1 to September 4, 2023.

54. During the current year, the Company acquired 26% of the issued equity share capital of TP Mercury Limited (a special purpose vehicle for sourcing of solar power through open access for the Company's Ranjangaon Unit under the Group Captive Scheme) for INR 135.75 lacs pursuant to the Share Purchase Agreement dated September 13, 2023 with Tata Power Renewable Energy Limited and TP Mercury Limited). The Company is entitled to receive back face value of the amount invested at the end of the term of agreement and accordingly this investment is accounted as a financial asset measured at fair value through profit and loss in accordance with IND AS 109.

5 5. Additional Regulatory Information:

a. There are no immovable properties where the title deeds are not held in the name of the Company (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company);

b. There are no loans or advances in the nature of loans granted to promoters, directors, KMPs and related parties, either severally or jointly with another person, that are (i) repayable on demand or (ii) without specifying any terms or period of repayment;

c. The Company does not have any Benami property, and no proceedings have been initiated or is pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988;

d. The Company has been regular in filling quarterly returns or statements of current assets with banks and those are in agreement with the books of accounts;

e. The Company has not been declared a wilful defaulter by any bank or financial institution;

f. The Company has no transactions with companies struck off under Sec.248 of the Companies Act, 2013 or Sec. 560 of the Companies Act, 1956;

g. The Company does not have any charges or satisfaction yet to be registered with ROC beyond the statutory period;

h. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year;

i. 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;

j. 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.

k. The Company does not have any scheme of arrangement which needs to be accounted for in the books of accounts of the Company;

l. The Company has not advanced, loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company or (ii) provide any guarantee, security or the like to or on behalf of the Company;

m. The Company has not received any funds from any person(s) or entity(ies), including foreign entities with the understanding (whether recorded in writing or otherwise) that the Company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company or (ii) provide any guarantee, security or the like to or on behalf of the Company;

n. 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.

56. The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for the Code on Social Security, 2020 on November 13, 2020, and invited suggestions from stakeholders which are under consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified. The Company will give appropriate impact in its standalone financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

57. Previous period's figures have been regrouped/reclassified wherever necessary to correspond with the current period's classification/disclosure. Reclassification were due to changes in presentation/classification of items under paragraph 41 of IND AS 1. The impact of such regrouping/reclassification are not material to standalone financial statements.

58. The audited standalone financial results along with the report thereon are also available on the Company's website www.xproindia.com and on the websites of BSE (www.bseindia.com) and NSE (www.nseindia.com).

59. The standalone financial statements were approved for issue by the Board of Directors at their meeting held at New Delhi on

May 28, 2024.