5.2 The Hon'ble National Company Law Tribunal, Chennai (NCLT) vide its order dated July 27, 2023 read with order dated September 20, 2023 has sanctioned the Scheme of Amalgamation ('Scheme') of the Company's Wholly Owned Subsidiaries (WOS) Parrys Investments Limited, Parrys Sugar Limited, and Parry Agrochem Exports Limited with a WOS of the Company, Parry Infrastructure Company Private Limited and consequent to filing of the Form INC 28 along with the Certified Copy of the Order with the Registrar of Companies on October 10, 2023, the Scheme has become effective from October 10, 2023 with appointed date of April 01,2022.

5.3 The carrying value of investments is less than the net worth of the subsidiaries/joint venture which is an indicator of potential impairment. The Company has performed a detailed impairment assessment and based on the assessment performed, it was determined that there was no impairment to be recognized for the year ended March 31, 2024. (March 31, 2023: H15,511 Lakhs). Refer note 43 for further information.

The trade receivables of the Company do not contain a significant financing component (also refer note 49.5) and accordingly, the Company has adopted the simplified approach under Ind AS 109 for recognition of impairment losses on trade receivables. Consequently, the disclosure of trade receivables into "Trade receivables which have significant increase in credit risk" and "Trade receivables which are credit impaired" has not been given since it is not relevant to the Company.

The Company uses other publicly available financial information and its own trading records before accepting any customer. The Company's exposure is continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.

a. The Board of Directors of the Company in their meeting held on March 15, 2024 have approved the sale of Investment in the Joint Venture, Algavista Greentech Private Limited. The Company is in process of identifying potential buyers. The directors of the Company expect that the fair value less cost to sell will be higher than the aggregate carrying amount of the related assets, based on Valuation Reports of the assets obtained. Therefore, no impairment loss were recognised on reclassification of the Investments as held for sale as at March 31,2024.

16.3 Terms attached to Equity Shares:

The Company has one class of equity share having a par value of per share. Each holder of equity share is entitled to one vote per share. The dividend when proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. Repayment of capital on liquidation will be in proportion to the number of equity shares held.

Share options granted under the Company's employee share option plan carry no rights to dividends and no voting rights.

16.4 Dividend

The Company declared interim dividend of H4 per share on November 08, 2023 (total dividend H7,101 Lakh) which was paid in December 2023 to the holders of fully paid equity shares. The Company declared a second interim dividend for the year 2022-23 of H4 per share on April 10, 2023 (total dividend H7,101 Lakh) which was paid in May 2023.

1. The Code on Social Security, 2020 ("Code") relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

2. The Company has evaluated the impact of the recent Supreme Court Judgment in case of "Vivekananda Vidyamandir And Others Vs The Regional Provident Fund Commissioner (II) West Bengal" and the related circular (Circular No. C-I/1(33)2019/Vivekananda Vidya Mandir/284) dated March 20, 2019 issued by the Employees' Provident Fund Organisation in relation to non-exclusion of certain allowances from the definition of "basic wages" of the relevant employees for the purposes of determining contribution to provident fund under the Employees' Provident Funds & Miscellaneous Provisions Act, 1952. In this regard, no provision has been considered necessary in the Financial Statements.

34. Expenditure incurred for Corporate Social Responsibility

EID Parry has been carrying out CSR activities for a long time through AMM Foundation (AMM) while also extending CSR activities to the local communities in and around its factories located in the States of Tamil Nadu, Andhra Pradesh and Karnataka. EID Parry had identified the following broad program areas with focus on quality service delivery and empowerment: Providing basic health care facilities to economically backward societies across geographical areas, Improving access to education, Provision of Skill Development/Vocational Training, Rural Development, Environmental Sustainability, Promoting Sports, Arts & Culture and Sustainable livelihood.

45.3 Income tax directly recognised in equity

No tax has been recognised directly in equity.

46. Segment Information

Information reported to the chief operating decision maker (CODM) for the purposes of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided, and in respect of the following segments tabulated below. The directors of the Company have chosen to organise the Company around differences in products and services. No operating segments have been aggregated in arriving at the reportable segments of the Company. Specifically the Company's reportable segments under Ind AS 108 are as follows.

47. Employee benefit plans

A. Defined contribution plans

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised H941 Lakh (year ended March 31,2023 - H768 Lakh) for Provident Fund contributions, H379 Lakh (year ended March 31, 2023 - H353 Lakh) for Superannuation Fund contributions and H1 Lakh (year ended March 31, 2023 - H1 Lakh) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

B. Defined benefit plans:

Gratuity -

In respect of Gratuity plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as March 31, 2024 by KP Actuaries and Consultants LLP The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method. The following table sets forth the status of the Gratuity Plan of the Company and the amount recognized in the Balance Sheet and Statement of Profit and Loss. The Company provides the gratuity benefit through annual contributions to a fund managed by the Life Insurance Corporation of India (LIC) and ICICI.

The Company is exposed to various risks in providing the above gratuity benefit which are as follows:

Interest Rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial statements).

Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan's liability.

Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

The Company has invested the plan assets with the insurer managed funds. The insurance company has invested the plan assets in Government Securities, Debt Funds, Equity shares, Mutual Funds, Money Market Instruments and Time Deposits. The expected rate of return on plan asset is based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation.

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, attrition rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The results of sensitivity analysis is given

below:

Please note that the sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods of assumptions used in preparing the sensitivity analysis from prior years.

Positive represents increase and negative represents decrease in obligation.

The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The Insurance Company, as part of the policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiency of funds under the policy). The policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in an increase in liability without corresponding increase in the asset).

49. Financial instruments

49.1 Capital management

The Company's capital management is intended to safeguard their ability to continue as a going concern and maximise the return to shareholders for meeting the long-term and short-term goals of the Company through the optimization of the debt and equity balance.

The Company determines the amount of capital required on the basis of annual and long-term operating plans and strategic investment plans. The funding requirements are met through equity and long-term/short-term borrowings. The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

For the purpose of capital management, capital includes issued equity capital, securities premium and all other reserves attributable to the equity shareholders of the Company. Net debt includes all long and short-term borrowings (including current maturities of long term debt) as reduced by cash and cash equivalents.

49.3 Financial risk management objectives

The Company has adequate internal processes to assess, monitor and manage financial risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using financial instruments such as foreign currency forward contracts, interest and currency swaps to hedge risk exposures and appropriate risk management policies as detailed below. The use of these financial instruments is governed by the Company's policies approved by the Board of Directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk and the investment of excess liquidity. The Company does not enter into trade financial instruments, including derivative financial instruments, for speculative purposes.

49.4 Market risk

The Company's financial instruments are exposed to market rate changes. The Company is exposed to the following significant market risks:

Ý Foreign currency risk

Ý Interest rate risk

Ý Other price risk

Market risk exposures are measured using sensitivity analysis. There has been no change to the Company's exposure to market risks or the manner in which these risks are being managed and measured.

49.4.1 Foreign currency risk management

The Company is exposed to foreign exchange risk on account of exports and imports.

The Company has a forex policy in place whose objective is to reduce foreign exchange risk by deploying the appropriate hedging strategies (forward covers and options) and also by maintaining reasonable open exposures within approved parameters depending on the future outlook on currencies.

c. Foreign currency sensitivity analysis

The Company is mainly exposed to fluctuations in US Dollar. The following table details the Company's sensitivity to a 10% increase and decrease against the US Dollar on the outstanding balance. 10% is the sensitivity used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only net outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. A positive number below indicates an increase in profit or equity where the Rupee strengthens by 10% against the US Dollar. For a 10% weakening against the US Dollar, there would be a comparable impact on the profit or equity.

49.4.2 Interest rate risk management

The Company issues commercial papers, draws working capital demand loans, cash credit etc. for meeting its funding requirements.

Interest rates on these borrowings are exposed to change in respective benchmark rates. The Company manages the interest rate risk by maintaining appropriate mix/portfolio of the borrowings.

a. Interest rate sensitivity analysis

The sensitivity analysis below has been determined for borrowings assuming the amount of borrowings outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis points increase or decrease in case of rupee borrowings is used

when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates.

Changes in interest rates by 50 basis from March 31, 2024, in case of rupee borrowings and all other variables were held constant, will impact the net annual interest expense on floating rate borrowing would by approximately H97 Lakh (March 31,2023: H21 Lakh).

49.4.3 Other price risks

The Company is exposed to equity price risks arising from equity investments. Certain of the Company's equity investments are held for strategic rather than trading purposes. The Company also holds certain other equity investments for trading purposes.

a. Equity price sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 1% higher/lower other comprehensive income/equity for the year ended March 31, 2024 would increase/ decrease by H394 Lakh (H304 Lakh for the year ended March 31, 2023) as a result of the changes in fair value of equity investments measured at FVTOCI. The impact of change in equity price on profit or loss is not significant.

49.5 Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

a. Impairment of financial assets other than Trade Receivables

The credit risk on cash and bank balances is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.

The estimated gross carrying amount at default based on 12 month expected credit loss method is H Nil (March 31, 2023: H Nil) for investments, loans, deposits and other financial assets. There is no expected credit loss recognised for the year ended March 31, 2024 and March 31, 2023.

b. Impairment of Trade Receivables

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control relating to the customer credit risk management. The Company uses financial information and past experience to evaluate credit quality of majority of its customers and individual credit limits are defined in accordance with this assessment. Outstanding receivables and the credit worthiness of its counterparties are periodically monitored and taken up on case to case basis. The Company evaluates the concentration of risk with respect to trade receivables as low its customers are located in several jurisdictions representing large number of minor receivables operating in independent markets. There is no material expected credit loss based on the past experience. However, the Company assesses the impairment by specific items of trade receivable and has accordingly created loss allowance on trade receivables. Expected Credit Loss has been computed for the Company as a whole as the credit profile of customers from all segments are similar.

49.7 Financing facilities

The Company has access to financing facilities of which H95,416 Lakh (as at March 31, 2023: H1,21,554 Lakh) were unused at the end of the reporting period. The Company expects to meet its other obligations from operating cash flows and proceeds of maturing financial assets.

49.8 Fair value measurements

Some of the Company's financial assets and financial liabilities are measured at fair value at the end of the reporting period. The following table gives information about how the fair values of these financial assets and financial liabilities are determined (in particular, the valuation techniques and inputs used):

50. Share based payments

50. 1 Employee share option plan of the Company

50.1.1 Details of the employee share option plans of the Company

The Company has share option scheme for executives and senior employees of the Company. As approved by the shareholders at previous annual general meetings, ESOP schemes will be administered by the Nomination and Remuneration Committee of the Board of Directors.

Each employee share option converts into one equity share of the Company on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry.

53.1 The Tamilnadu Government declared State Advisory Price (SAP) for the sugar year 2013-14, 2014-15 and 2015-16. The Company has challenged the right of State Government to declare the SAP in the Hon'ble High Court of Madras. The matter is subjudice.

53.2 Future cash outflows in respect of the above referred matters are determinable only on receipt of judgements/decisions pending at various forums/authorities.

53.3 The Income Tax Department/Commercial Tax Department/Central Excise and Service Tax and GST Authority has filed appeal against the favorable order passed by lower forum in favor of the Company in appropriate appellate forum to the extent of H1,972 Lakh. It is expected that there will not be any outflow of economic resources embodying economic benefits. Hence, no provision is considered necessary against the same.

53.4 The Income Tax Department has been adjusting the demand orders against other refunds receivable by the company in various assessment years, and accordingly this does not include interest, as applicable.

53.5 Certain Industrial Disputes are pending before Tribunal/High Courts. The liability of the Company in respect of these disputes depends upon the final outcome of such cases and the quantum of which is not currently ascertainable.

53.6 Refer note 51.2 for Letter of Comforts given by the Company to various banks for the facilities availed by its subsidiary, Parry Sugars Refinery India Private Limited (PSRIPL).

54 No proceeding has been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

55 The Company has not been declared wilful defaulter by any bank or financial institution or any other lender.

56 The Company has no transactions with Companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

57 There are no charges or satisfaction pending to be registered with Registrar of Companies beyond the statutory time limit.

58 The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013, read with the Companies (Restriction on number of Layers) Rules, 2017.

59 The Company does not have any transaction 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.

60 The Company has not traded or invested in Crypto Currency or Virtual Currency during the year.

61 The Company has the following Core Investment Companies in the group:

1. Cholamandalam Financial Holdings Limited

2. Ambadi Investments Limited

62 Subsequent to the balance sheet, the Board of Directors of the Company's subsidiary, Coromandel International Limited have recommended a final dividend of H6 per share (estimated dividend inflow for the Company would be H9,927 Lakh), which is subject to the approval by the subsidiary's shareholders.

63 The Company has working capital limits with State Bank of India/Union Bank of India on the basis of security of Inventories and Trade Receivables and has filed quarterly returns with the Bank. The following are the differences between the returns filed and the books of accounts:

The difference between the quarterly returns/statements and the books of account is due to valuation of sugar stock as per the method prescribed by RBI. As per the requirements of para 2.2.4 of RBI Master Circular on Loans and Advances - Statutory and Other Restrictions No. RBI/2015-16/95 /DBR.No.Dir.BC.10/13.03.00/2015-16 dated July 1, 2015, the Company has valued its unreleased stock of sugar at the average of the price realised in the preceding three months (moving average) or the current market price, whichever is lower, in its returns, whereas in the books of accounts it is valued at cost or net realizable value, whichever is lower.

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

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

(a) Current ratio (times): Current Assets/Current Liabilities

(b) Debt-Equity ratio (times): (Long term borrowings Short term borrowings Current maturities of long term borrowings)/ Total Equity

(c) Debt Service Coverage ratio (times): Earnings (including exceptional item) before interest on long term borrowings, tax, impairment, depreciation & amortisation/(Interest on long term borrowing Long term borrowings principal repayment)

(d) Return on equity ratio (%): Profit after Tax/Average Total Equity

(e) Inventory turnover ratio (times): Cost of Goods Sold (Cost of Material Consumed Purchases of Stock-in-Trade Changes in inventories of finished goods, by-products, work-in-progress and stock-in-trade)/Average Inventory

(f) Trade receivables turnover ratio (times): Revenue from Operations/Average Trade Receivables

(g) Trade payables turnover ratio (times): Total Purchases (Closing Stock of Raw Materials Cost of materials consumed - Opening Stock of Raw Materials Purchases of Stock-in-trade)/Average Trade Payables

(h) Net capital turnover ratio (times): Net Sales/Working Capital

(i) Net profit ratio (%): Profit After Tax (after exceptional items)/Net Sales

(j) Return on Capital employed (%): Earnings (including exceptional item) before interest and tax/Capital Employed (Tangible Net Worth Total Debt Deferred Tax Liability)

(k) Return on investment (%): (Final Value of Investment - Initial Value of Investment Dividend)/I nitial Value of Investment 67 Utilisation of borrowed funds and share premium:

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.

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.

68 The figures for the previous year have been reclassified/regrouped wherever necessary for better understanding and comparability.

69 Approval of Standalone Ind AS financial statements

The Standalone Ind AS financial statements were reviewed and recommended by the Audit Committee and has been approved by the Board of Directors in their respective meetings held on May 23, 2024 and May 24, 2024.