Aggregate market value of quoted investments ' 8340.39 Crores (2022 - ' 11205.72 Crores).

Aggregate amount of impairment in value of investments ' 77.05 Crores (2022 - ' 68.55 Crores).

* Investments in Fixed Maturity Plans (FMPs) that are intended to be held by the Company till maturity are classified as amortised cost. The underlying instruments in the portfolio of these FMPs have minimal churn and are held to receive contractual cashflows.

** Exchange Traded / Target Maturity Index Funds follow a passive buy and hold investment strategy to receive contractual cashflows except for meeting redemption and rebalancing requirements. Investment in such funds are classified as FVTOCI as cash flows from these investments are realised on maturity or upon sale.

# Additional Tier 1 bonds, which are perpetual in nature, are issued by commercial banks under Reserve Bank of India guidelines. These have been classified as debt instruments by the Company based on the substantive characteristics of the contract.

The cost of inventories recognised as an expense includes ' 20.67 Crores (2022 - ' 17.58 Crores) in respect of write-downs of inventory to net realisable value. During the year, reversal of previous write-downs of ' 0.81 Crore (2022 - ' 0.91 Crore) have been made owing to subsequent increase in realisable value.

Inventories of ' 337.08 Crores (2022 - ' 574.71 Crores) are expected to be recovered after more than twelve months. The operating cycle of the Company is twelve months.

* Cash credit facilities are secured by hypothecation of inventories of the Company, both present and future. The quarterly returns / statements filed by the Company with the bank(s) in respect of such facilities are in agreement with the books of accounts.

(iii) Amount required to be spent by the Company during the year as per Section 135 read with Section 198 of the Companies Act, 2013 - ' 364.91 Crores (2022 - ' 354.27 Crores) being 2% of the average Net Profit of the Company.

Expenditure incurred during the year is ' 365.50 Crores (2022 - ' 355.03 Crores) comprising employee benefits expense of ' 14.33 Crores (2022 - ' 15.92 Crores) and other expenses of ' 351.17 Crores (2022 - ' 339.11 Crores), of which ' 62.71 Crores (2022 - ' 26.01 Crores) is accrued for payment as on 31st March, 2023. The above includes an amount of ' 23.10 Crores (2022 - ' 3.90 Crores) with regard to ongoing project, which has been deposited in the Unspent CSR Account within 30 days from the end of the financial year. Amount available for set off in succeeding financial years is ' 1.35 Crores (2022 - ' 0.76 Crore). Such CSR expenditure of ' 365.50 Crores (2022 - ' 355.03 Crores) excludes ' 9.43 Crores (2022 - ' 5.85 Crores) being the excess of expenditure of salaries of CSR personnel and administrative expenses over the limit of 5% of total CSR expenditure laid down under Rule 7(1) of the Companies (Corporate Social Responsibility Policy) Rules, 2014 for such expenses.

CSR activities undertaken during the year pertain to: poverty alleviation; promoting education and skill development; promoting healthcare including preventive healthcare; providing sanitation and drinking water; ensuring environmental sustainability; enabling climate resilience; rural development projects; creating livelihoods for people (especially those from disadvantaged sections of society); protection of national heritage, art and culture; preserving and promoting music; and providing relief and assistance to victims of disasters and calamities.

(iv) Research and Development expenses for the year amount to ' 161.31 Crores (2022- ' 143.59 Crores).

(v) Contingent liabilities and commitments:

(a) Contingent liabilities

Claims against the Company not acknowledged as debts ' 875.28 Crores (2022 - ' 880.58 Crores), including interest on

claims, where applicable, estimated to be ' 283.62 Crores (2022 - ' 285.07 Crores). These comprise:

• Excise duty, VAT / sales taxes, GST and other indirect taxes claims disputed by the Company relating to issues of applicability and classification aggregating ' 585.19 Crores (2022 - ' 593.95 Crores), including interest on claims, where applicable, estimated to be ' 261.96 Crores (2022 - ' 267.18 Crores).

• Local Authority taxes / cess / royalty on property, utilities, etc. claims disputed by the Company relating to issues of applicability and determination aggregating ' 239.94 Crores (2022 - ' 236.63 Crores), including interest on claims, where applicable, estimated to be ' 15.09 Crores (2022 - ' 11.22 Crores).

• Third party claims arising from disputes relating to contracts aggregating ' 31.79 Crores (2022 - ' 29.22 Crores), including interest on claims, where applicable, estimated to be ' 0.17 Crore (2022 - ' 0.10 Crore).

• Other matters ' 18.36 Crores (2022 - ' 20.78 Crores), including interest on other matters, where applicable, estimated to be ' 6.40 Crores (2022 - ' 6.57 Crores).

It is not practicable for the Company to estimate the closure of these issues and the consequential timings of cash flows, if any, in respect of the above.

(b) Commitments

• Estimated amount of contracts remaining to be executed on capital accounts and not provided for ' 1403.04 Crores (2022 - ' 984.51 Crores).

• Uncalled liability on investments is ' 60.71 Crores (2022 - ' 54.89 Crores).

(vi) Employee Benefit PlansDescription of Plans

The Company makes contributions to both Defined Benefit and Defined Contribution Plans for qualifying employees. These Plans are administered through approved Trusts, which operate in accordance with the Trust Deeds, Rules and applicable Statutes. The concerned Trusts are managed by Trustees who provide strategic guidance with regard to the management of their investments and liabilities and also periodically review their performance.

Provident Fund, Pension and Gratuity Benefits are funded and Leave Encashment Benefits are unfunded in nature. The Defined Benefit Pension Plans are based on employees' pensionable remuneration and length of service. Under the Provident Fund, Gratuity and Leave Encashment Schemes, employees are entitled to receive lump sum benefits.

(a) Defined Benefit Plans:

The liabilities arising in the Defined Benefit Schemes are determined in accordance with the advice of independent, professionally qualified actuaries, using the projected unit credit method. The Company makes regular contributions to these Defined Benefit Plans. Additional contributions are made to these plans as and when required based on actuarial valuation. Some Group companies also participate in these Plans. These participating Group companies make contributions to the Plans for their respective employees on a uniform basis and each entity ascertains their obligation through actuarial valuation. The net Defined benefit cost is recognised by these companies in their respective Financial Statements.

Risk Management

The Defined Benefit Plans expose the Company to risk of actuarial deficit arising out of investment risk, interest rate risk and salary cost inflation risk.

Investment Risk: This may arise from volatility in asset values due to market fluctuations and impairment of assets due to credit losses. These Plans primarily invest in debt instruments such as Government securities and highly rated corporate bonds - the valuation of which is inversely proportional to the interest rate movements.

Interest Rate Risk: The present value of Defined Benefit Plan liability is determined using the discount rate based on the market yields prevailing at the end of reporting period on Government securities. A decrease in yields will increase the fund liabilities and vice-versa.

Salary Cost Inflation Risk: The present value of the Defined Benefit Plan liability is calculated with reference to the future salaries of participants under the Plan. Increase in salary might lead to higher liabilities.

These Plans have a relatively balanced mix of investments in order to manage the above risks. The investment strategy is designed based on the interest rate scenario, liquidity needs of the Plans and pattern of investment as prescribed under various statutes.

The Trustees regularly monitor the funding and investments of these Plans. Risk mitigation systems are in place to ensure that the health of the portfolio is regularly reviewed and investments do not pose any significant risk of impairment. Periodic audits are conducted to ensure adequacy of internal controls. Pension obligation of the employees is secured by purchasing annuities thereby de-risking the Plans from future payment obligation.

(vii) Leases:

As a Lessee

The Company's significant leasing arrangements are in respect of operating leases for land, buildings, (comprising licensed properties, residential premises, office premises, stores, warehouses etc.) and plant & equipment. These arrangements generally range between 2 years and 10 years, except for certain land and building leases where the lease term ranges up to 99 years. The lease arrangements have extension / termination options exercisable by either parties which may make the assessment of lease term uncertain. While determining the lease term, all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option are considered.

The amount of ROU Assets and Lease Liabilities recognised in the Balance Sheet are disclosed in Note 3G and Note 15 respectively. The total cash outflow for leases for the year is ' 412.57 Crores (2022 - ' 359.73 Crores) [including payments of ' 329.16 Crores (2022 - ' 275.66 Crores) in respect of short-term / low-value leases and variable lease payments of ' 5.90 Crores (2022 - ' 2.69 Crores)].

The sensitivity of variable lease payments and effect of extension / termination options not included in measurement of lease liabilities is not material.

The Company has leased out its investment properties etc. under operating lease for periods ranging upto 30 years. Lease payments are structured with periodic escalations consistent with the prevailing market conditions. There are no variable lease payments. The details of income from such leases are disclosed under Note 3C and Note 22. The Company does not have any risk relating to recovery of residual value of investment property at the end of leases considering the business requirements and other alternatives.

(viii) Under the terms of the Joint Venture Agreement (JVA), Logix Developers Private Limited (LDPL) (CIN: U70101DL2010PTC207640) was to develop a luxury hotel-cum-service apartment complex. However, Logix Estates Private Limited, Noida, the JV partner communicated its intention to explore alternative development plans to which the Company reiterated that it was committed only to the project as envisaged in the JVA. The JV partner refused to progress the project and instead expressed its intent to exit the JV by selling its stake to the Company and subsequently proposed that both parties should find a third party to sell the entire shareholding in LDPL. The resultant deadlock has stalled the project. The Company's petition that the affairs of the JV are being conducted in a manner that is prejudicial to the interest of the Company and the JV entity, as also a petition for winding up of LDPL filed by Logix Estates, are currently before the Hon'ble National Company Law Tribunal.

New Okhla Industrial Development Authority (NOIDA), vide letter dated 6th July, 2022, cancelled the sub-lease for the land on which the project was to be constructed on account of non-payment of lease installments and non-fulfilment of the conditions of the sub-lease, including forfeiture of the amount deposited. Upon cancellation of the sub-lease, LDPL is evaluating all options to pursue its rights.

The financial statements of LDPL for the year ended 31st March, 2023 are yet to be approved by its Board of Directors.

(ix) The Company on 27th October, 2022 acquired, in the third tranche, 1000 Compulsorily Convertible Preference Shares of '10 / -each of Mother Sparsh Baby Care Private Limited (Mother Sparsh), consequent to which the Company's shareholding in Mother Sparsh aggregated 22.00% of its share capital on a fully diluted basis. Accordingly, Mother Sparsh became an associate of the Company with effect from the aforesaid date and the investment is being carried at cost.

(x) The Company on 7th April, 2023 divested its entire shareholding, i.e., 26.00% of the paid-up share capital, held in Espirit Hotels Private Limited (Espirit), consequent to which Espirit ceased to be a joint venture of the Company with effect from the said date.

(xi) The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) (Amendment) Rules, 2023 on 31st March, 2023 amending:

• Ind AS 1, ‘Presentation of Financial Statements' - This amendment requires companies to disclose their material accounting policies rather than their significant accounting policies.

• Ind AS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors' - This amendment has introduced a definition of ‘accounting estimates' and includes guidance to help distinguish changes in accounting policies from changes in accounting estimates.

• Ind AS 12 ‘Income Taxes' - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The amendments clarify how companies account for deferred tax on transactions such as leases.

The same are applicable for financial statements pertaining to annual periods beginning on or after 1st April, 2023. Based on a preliminary evaluation, the Company does not expect any material impact on the financial statements resulting from the implementation of these amendments.

The Company's financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for growth and creation of sustainable stakeholder value. The Company funds its operations through internal accruals and aims at maintaining a strong capital base to support the future growth of its businesses.

During the year, the Company issued 10,47,61,810 Ordinary Shares (2022 - 1,44,11,700 Ordinary Shares) of ' 1.00 each amounting to ' 10.48 Crores (2022 - ' 1.44 Crores) towards its employee stock options. The securities premium stood at ' 13065.62 Crores as at 31st March, 2023 (2022 - ' 9988.14 Crores).

The Company has a system-based approach to risk management, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as market risk, credit risk and liquidity risk) that may arise as a consequence of its business operations as well as its investing and financing activities. Accordingly, the Company's risk management framework has the objective of ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with the applicable regulations. It also seeks to drive accountability in this regard.

Liquidity Risk

The Company's Current assets aggregate ' 35203.44 Crores (2022 - ' 30942.01 Crores) including Current Investments, Cash and cash equivalents and Other Bank Balances of ' 20188.33 Crores (2022 - ' 15502.89 Crores) against an aggregate Current liability of ' 12415.62 Crores (2022 - ' 11478.09 Crores). As part of its surplus liquidity management operations, the Company may sell instruments that are held at amortised cost. Such sales may be infrequent (even if significant in value) or insignificant in value both individually and in aggregate (even if frequent). During the year, the net loss arising on such sale amounted to ' 49.13 Crores (2022 - Nil) (Refer Note 22).

Other Non-current liabilities other than lease liabilities due between one year to three years amounted to ' 154.16 Crores (2022 - ' 94.99 Crores) and Other Non-current liabilities due after three years amounted to ' 1.61 Crores (2022 - ' 6.05 Crores) on the reporting date. The maturity analysis of undiscounted lease liabilities are disclosed under Note 27(vii).

Further, while the Company's total equity stands at ' 67593.80 Crores (2022 - ' 61399.57 Crores), it has non-current borrowings of ' 3.28 Crores (2022 - ' 4.54 Crores). In such circumstances, liquidity risk or the risk that the Company may not be able to settle or meet its obligations as they become due does not exist.

Market Risk

The Company is not an active investor in equity markets; it holds certain investments in equity for long term value accretion which are accordingly measured at fair value through Other Comprehensive Income. The value of investments in such equity instruments as at 31st March, 2023 is ' 1464.41 Crores (2022 - ' 1372.52 Crores). Accordingly, fair value fluctuations arising from market volatility is recognised in Other Comprehensive Income.

As the Company is virtually debt-free and its deferred payment liabilities do not carry interest, the exposure to interest rate risk from the perspective of financial liabilities is negligible. Further, treasury activities, focused on managing investments in debt instruments, are centralised and administered under a set of approved policies and procedures guided by the tenets of safety, liquidity and returns. This ensures that investments are made within acceptable risk parameters after due evaluation.

The Company's investments are predominantly held in bonds / debentures, fixed deposits, certificate of deposits and debt mutual funds. Mark to market movements in respect of the Company's investments in bonds / debentures that are held at amortised cost

are temporary and get recouped through coupon accruals. Other investments in bonds / debentures, certificate of deposits are fair valued through the Statement of Profit and Loss to recognise market volatility, which is not considered to be significant. Fixed deposits are held with highly rated banks and companies and have a short tenure and are not subject to interest rate volatility.

The Company also invests in mutual fund schemes of leading fund houses. Such investments are susceptible to market price risks that arise mainly from changes in interest rate which may impact the return and value of such investments. However, given the relatively short tenure of underlying portfolio of the mutual fund schemes in which the Company has invested, such price risk is not significant.

For select agricultural commodities primarily held for trading, futures contracts are used to hedge price risks till positions in the physical market are matched. Such activities are managed by the business team within an approved policy framework. The carrying value of inventories is adjusted to the extent of fair value movement of the risk being hedged. Such hedges are generally for short time horizons and recognised in profit or loss within the crop cycle. Accordingly, the Company's net exposure to commodity price risk is considered to be insignificant.

Foreign currency risk

The Company undertakes transactions denominated in foreign currency (mainly US Dollar, Pound Sterling, Euro and Japanese Yen) which are subject to the risk of exchange rate fluctuations. Financial assets and liabilities denominated in foreign currency, including the Company's net investments in foreign operations (with a functional currency other than Indian Rupee), are also subject to reinstatement risks.

The Company has established risk management policies to hedge the volatility in cashflows arising from exchange rate fluctuations in respect of firm commitments and highly probable forecast transactions, through foreign exchange forward, futures and options contracts. The proportion of forecast transactions that are to be hedged is decided based on the size of the forecast transaction and market conditions. As the counterparty for such transactions are highly rated banks or recognised exchange(s), the risk of their non-performance is considered to be insignificant.

The Company uses derivatives to hedge its exposure to foreign exchange rate fluctuations. Where such derivatives are not designated under hedge accounting, changes in the fair value of such hedges are recognised in the Statement of Profit and Loss.

The Company may also designate certain hedges which are entered to manage the volatility in cashflows as a cash flow hedge under hedge accounting. The currency, amount and tenure of such hedges are generally matched to the underlying transaction(s). Changes in the fair value of the effective portion of cash flow hedges are recognised as cash flow hedging reserve in Other Comprehensive Income. While the probability of such hedges becoming ineffective is very low, the ineffective portion, if any, is immediately recognised in the Statement of Profit and Loss.

For every percentage point increase / decrease in the underlying exchange rate of the outstanding foreign currency denominated assets and liabilities, including derivative contracts, holding all other variables constant, the profit before tax for the year ended 31st March, 2023 would decrease / increase by ' 2.85 Crores (2022 - ' 2.22 Crores) and other equity as at 31st March, 2023 would decrease / increase by ' 2.68 Crores (2022 - ' 42.87 Crores) on a pre-tax basis.

Credit Risk

Company's deployment in debt instruments are primarily in Government securities, fixed deposits with highly rated banks and companies, bonds issued by government institutions, public sector undertakings, mutual fund schemes of leading fund houses and certificate of deposits issued by highly rated banks and financial institutions. Of this, investments that are held at amortised cost stood at ' 15420.01 Crores (2022 - ' 17732.33 Crores). With respect to the Company's investing activities, mutual fund schemes and counter parties are shortlisted and exposure limits determined on the basis of their credit rating (by independent agencies), financial statements and other relevant information. As these counter parties are Central / State Government, Government institutions / public sector undertakings with investment grade / sovereign credit ratings and taking into account the experience of the Company over time, the counter party risk attached to such assets is considered to be insignificant.

The Company's customer base is large and diverse limiting the risk arising out of credit concentration. Further, credit is extended in business interest in accordance with guidelines issued centrally and business-specific credit policies that are consistent with such guidelines. Exceptions are managed and approved by appropriate authorities, after due consideration of the counterparty's credentials and financial capacity, trade practices and prevailing business and economic conditions. The Company's exposure to trade receivables on the reporting date, net of expected loss provisions, stood at ' 2321.33 Crores (2022 - ' 1952.50 Crores).

The Company's historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets; consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the counterparty etc. Loss allowances and impairment is recognized, where considered appropriate by responsible management.

Fair value hierarchy

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

Level 1: Quoted prices (unadjusted) in active market or Net Asset Value (NAV) for identical assets or liabilities.

Level 2: Inputs other than quoted price included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

The fair value of financial instruments that are not traded in an active market is determined using market approach and valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

Derivatives are valued using valuation techniques with market observable inputs such as foreign exchange spot rates and forward rates at the end of the reporting period, yield curves, risk free rate of returns, volatility etc., as applicable. The fair value of investment in Bonds / Debentures, Certificate of Deposits, Venture Capital funds etc. and financial liabilities, where applicable, is determined using market observable inputs such as quotes from market participants, value published by the issuer etc.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

If one or more of the significant inputs is not based on observable market data, the fair value is determined using generally accepted methodologies such as discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparty.

The fair value of trade receivables, trade payables and other current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short - term nature. Where such items are non-current in nature, the same has been classified as Level 3 and fair value determined using discounted cash flow basis. Similarly, unquoted equity instruments where most recent information to measure fair value is insufficient, or if there is a wide range of possible fair value measurements, cost has been considered as best estimate of fair value.

There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy. The sensitivity of change in the unobservable inputs used in fair valuation of Level 3 financial assets and liabilities does not have a significant impact on their value. There were no transfers between Level 1, Level 2 and Level 3 during the year.