A. Assets under construction :

Capital work in progress as at 31^st March 2023 comprises of expenditure incurred for construction of building and plant and machinery pertaining to ethanol expansion project at one plant of the Company of INR 970.34 million and this project is expected to be completed by 30^th September 2023.

The other costs comprises expenditure incurred for construction of plant and machinery and building including material procured for multiple projects at other plants.

B. Capitalisation of borrowing cost :

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

The above-mentioned capital expansion is financed by Bank. The amount of borrowing cost capitalised during the year is INR 187.30 million (31^st March 2022: INR 41.17 million). The rate used to determine amount of borrowing costs eligible for capitalisation is 4.44% (31^st March 2022: 4.33%), which is the EIR of those specific borrowings.

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

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

The fair values were determined after considering physical condition of the asset, technical usability / capacity, salvage value, quotes from independent vendors. The fair value of land was determined using market approach and building, plant, machinery and equipment using Depreciated Replacement Cost (DRC). The DRC was derived from the Gross Current Reproduction / Replacement Cost (GCRC) which is reduced by considering depreciation. The fair value measurement was classified under level 3 of the fair value hierarchy.

D. Impairment assessment of CGU :

As per the requirements of Ind AS 36, the Company tests at the end of every reporting period, whether there is any indication that the property, plant and equipment may be impaired. If any such indication exists, the Company estimates the recoverable amount of the property, plant and equipment. When the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. There were no indicators during the year ended 31^st March 2023.

Note 5 (a): Based on the request received from KBK Chem-Engineering Private Limited (‘KBK'), a wholly owned subsidiary of the Company and approval of the Board of Directors of SRSL, loan given to KBK was partially converted into equity shares of the subsidiary. KBK issued 230,628 shares of INR 3,252/share (at a premium of INR 3,152/share), on conversion loan of INR 750 million into equity. The loan was converted into equity share capital based on the valuation report of KBK received by the Company from a registered valuer for the year ended 31^st March 2022. Since the value of investment after conversion of loan exceeded the fair value of investment of KBK, as certified by the valuer, management recorded an impairment provision of INR 750 million on the value of investment. Also, the impairment recognized in earlier years on loan balance converted into equity of INR 750 million was reversed on conversion of the loan. Thus, the provision for impairment of investment of INR 750 million and reversal of provision for doubtful loan receivable of INR 750 million, recorded in the current period had a net impact of INR Nil on the Statement of Profit and Loss and thus, were presented as net off each other in the Statement of Profit and Loss.

Note 5 (b): Investment in Gokak Sugars Limited is carried at cost in financial statements. Wherever indicators of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. There were no indicators of impairment identified during the year ended 31^st March 2023 and 31^st March 2022, pertaining to the Company's investment in Gokak Sugars Limited.

Note 5 (c): In respect of investments made in Monica Trading Private Limited (MTPL), the Company had not identified any indicators of impairment in the current year. In the previous year ended 31^st March 2022, the Company had recognised an impairment of INR 2.90 million in the statement of profit and loss pertaining to this investment on identification of indicators of impairment.

Note 5 (d): The Board of Directors, at its meeting held on 24^th May 2022, approved the Scheme of Amalgamation of three wholly owned subsidiaries of the Company, namely, Monica Trading Private Limited (‘MTPL'), Shree Renuka Agri Ventures Limited (‘SRAVL') and Shree Renuka Tunaport Private Limited (‘SRTPL') (referred to as “scheme of merger"), with the Company. The scheme for merger was filed with the Stock Exchanges on 01^st August 2022. The Company then filed an application with National Company Law Tribunal, Mumbai Bench for merger of MTPL and National Company Law Tribunal, Bengaluru Bench for merger of SRAVL and SRTPL with the Company.

The Official Liquidator has completed its audit of the records of MTPL and final reports of the Registrar of Companies and the Regional Director are awaited. In respect of applications made to NCLT, Bengaluru Bench, the Company is in the process of sending notices to creditors of SRAVL & SRTPL as per directions received from the NCLT.

Post regulatory and other necessary approvals, the merger would be accounted by applying the principles of Appendix C of Ind AS 103 - ‘Business combinations of entities under common control' using pooling of interest method.

Deferred tax assets are recognised for unused tax Losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits.

The Company has unabsorbed depreciation of INR 16,122.20 million (31^st March 2022: INR 15,592.72 million), unabsorbed tax losses of INR 5,555.59 million (31^st March 2022: INR 5,555.59 million) on which deferred tax asset has been created. The unabsorbed depreciation can be carried forward for indefinite period, whereas the unabsorbed business losses can be carried forward for 8 years. Accordingly, the deferred tax assets are recognized to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be recovered.

During the year, the Company has recognised impairment allowance on 12-month expected credit loss model amounting to INR 3.47 million (31^st March 2022: INR Nil). Also during the year, the Company has recognised impairment allowance on lifetime expected credit loss model amounting to INR Nil (31^st March 2022: INR 43.63 million).

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

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

Terms/rights attached to equity shares

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

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

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

Equity Contribution from Parents :

During the year, Company had received waiver in respect of interest accrued on trade payables for purchase of raw sugar and advances for sale of white sugar received from its affiliate company Wilmar Sugar Pte. Ltd. amounting to INR 111.14 million. The Company accounted for these waivers as equity contribution from the parent and has presented the same as a separate component of equity under other equity as per Ind AS 109 - Financial instruments.

Changes in equity instruments :

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

Revaluation reserve :

Revaluation reserve is credited when property, plant and equipment are revalued at fair value. The reserve is utilised in accordance with the requirements of Ind AS 16. During the year, the Company recognised impairment of property, plant and equipment through revaluation reserve amounting to INR Nil (31^st March 2022: INR 7.57 million) (net of deferred tax) and recognised amount of INR 0.23 million (31^st March 2022: INR 17.07 million) (net of deferred tax) as reversal of revaluation reserve on disposal of assets. During the year, the Company recognised revaluation reserve (net of deferred tax) of INR Nil (31^st March 2022: 2,512.77 million) on revaluation of property, plant and equipment as per Company's accounting policies.

Retained earnings :

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

Cost of hedging reserve :

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

Prior to the restructuring agreement, the Company was accruing interest expenses on these NCD's as per the original agreement with the debenture holder for the period from 01^st July 2018 to 30^th September 2022. However, as a part of the restructuring agreement, the Company and the debenture holder agreed on interest payment for the period from 01^st July 2018 to 30^th September 2022 of INR 262.50 million. Pursuant to this, the excess amount of accrual amounting to INR 311.42 million has been written back and accounted as other income during the year ended 31^st March 2023.

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

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

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

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

Note B: Nature of Security/guarantees

Secured Non-convertible debentures

1. Exclusive charge by way of mortgage/hypothecation on all the immovable/movable assets at Haldia & Panchaganga.

ECB Loans

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

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

Note C: Corporate guarantee

Wilmar International Limited has extended corporate guarantee towards term loans extended by First Abu Dhabi Bank,

Standard Chartered Bank, DBS Bank and working capital loans (refer note 22) extended by Bank of America, Standard

Chartered Bank, Ratnakar Bank Limited and DBS Bank India Limited aggregating to INR 20,700 million (31^st March 2022:

INR 17,200 million).

Note 37: Earnings Per Share [EPS]

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

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

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

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

iii. Disputes related to disallowance of common credit as per rule 42 of CGST Rules, 2017.

During the previous year, the Company received a show cause notice (SCN) from GST Department on completion of departmental audit for financial year 2017-18 for non-levy of GST on supply of Extra Neutral Alcohol to liquor manufacturing companies. The Company has obtained a stay order from Karnataka High Court against said SCN, the matter is pending before court as department has not yet filed any objections against said writ petitions in spite of specific directions from the court.

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

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

v. These litigations related to erstwhile Brazilian subsidiaries pertains to labour litigations of these erstwhile subsidiaries in which the Company or the Wilmar Group has been made a party, on account of economic group concept considered in the Lower Court of Brazil. The Company has paid deposits of INR 154.30 million as at 31^st March 2023 (31^st March 2022: INR 104.26 million) for contesting the order in Higher Courts in Brazil and this deposit paid has been grouped under “Amount paid under protests to government authorities" in the balance sheet. This balance is fully impaired in the books of accounts as at 31^st March 2023.

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

vii. During the year ended 31^st March 2023, Cane Commissioner of Karnataka issued orders directing all sugar mills in the state of Karnataka to make payments to sugarcane farmers at additional rates over and above the Fair Remunerative Price (FRP) announced by the Central Government as follows:

a. INR 100/MT for sugarcane supplied to mills without distillery

b. INR 150/MT for sugarcane supplied to mills with distillery

The Company along with others has filed a writ petition in Karnataka High Court against the order of the Cane Commissioner. Based on legal opinion obtained by the Company, management believes that the Company has merits and accordingly, no impact has been considered in the standalone financial results in respect of this matter.

Note 39: Defined Benefit plans

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

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member's length of service and salary at retirement age. The fund has the form of a trust and it is governed by the Board of Trustees. The Board of

Risk to the plan

Following risks are associated with the plan:

A. Actuarial Risk

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

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

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

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

B. Investment Risk

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

C. Liquidity Risk

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

D. Market Risk

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

E. Legislative Risk

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

Actuarial Assumptions

Key actuarial assumptions are given below:

Discount Rate:

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

Salary Growth Rate:

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

Rate of Return on Plan Assets:

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

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

Corporate guarantees

a. The Company has obtained corporate guarantees from Wilmar International Limited INR 20,700 million (31^st March 2022: INR 17,200 million) towards term loan and working capital limits extended by banks.

b. The Company has also provided guarantees on behalf of subsidiaries amounting to INR 580 million (31^st March 2022: INR 130 million) for loan availed by the subsidiaries. Details of which are as follows:

As at 31^st March 2023, the company has accumulated impairment of INR 13,560.74 million (31^st March 2022: INR 14,301.34 million) against total gross amount owed by related parties of INR 16,554.62 million (31^st March 2022: INR 17,955.83 million).

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

Note 42: Hedging activities and derivatives

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

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

Derivatives not designated as hedging instruments

The Company uses foreign exchange forward contracts to manage some of its transaction exposures. The foreign exchange forward contracts are not designated as cash flow hedges and are entered into for periods consistent with foreign currency exposure of the underlying transactions, generally from 2 to 4 months .

Derivatives designated as hedging instruments

Cash flow hedges

Foreign currency risk:

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

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

The hedge ineffectiveness can arise from:

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

items

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

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

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

The fair values of the Company's interest-bearing borrowings and loans are determined by using discounted cash flow method using discount rate that reflects the issuer's borrowing rate as at the end of the reporting period. The own nonperformance risk as at 31^st March 2023 was assessed to be insignificant.

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

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy together with a quantitative sensitivity analysis as at 31^st March 2023 and 31^st March 2022 are as shown below :

There have been transfers of Investment in equity shares in NCDEX from Level 2 to level 3 as offer received by the Company to sell its shareholding has been withdrawn and calculation of fair value is based on price to book value multiple of comparable quoted investments, adjusted for certain significant unobservable inputs like business risk discount and liquidity risk discount used in calculation of fair value.

Note 44: Financial risk management objectives and policies

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

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

Market risk

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

Foreign exchange exposure and risk

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

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

At 31^st March 2023, the Company has fully hedged the foreign currency exposure related to principal portion of External Commercial Borrowing (ECB) loan for 4 to 6 months using foreign currency forward contracts and expects to roll-forward these hedges in the future periods to hedge the foreign currency risks. The Company has also obtained foreign currency forward contracts to cover the foreign currency risks related to receivable in foreign currency and these contracts have a tenure of 3 months.

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

The Company manages its interest risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

Commodity price risk

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

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

Trade receivables

Trade receivables are non-interest bearing and are generally on credit terms of 7 to 60 days. An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on historical data of expected credit loss, actual credit loss and party-wise review of credit risk. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

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

Liquidity risk

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

Note 45: Capital management

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

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial and non-financial covenants (if any) and maximise shareholder's wealth. There have been no significant breaches in the financial and non financial covenants of any interest-bearing loans and borrowing in the current period.

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

Note 47: Leases

Company as a lessee

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

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

Set out below are the carrying amounts of right-of-use assets recognised and the movements during the period:

During the previous year ended 31^st March 2022, the Company had appointed a registered independent valuer who had relevant valuation experience for valuation of property, plant and equipment in India is a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

Set out below are the carrying amounts of lease liabilities (included under the head non-current and current financial liabilities) and the movements during the period:

Note 49: Other Statutory Information

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

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

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period. The Company is in the process of finalising the documents for creation of charge on external commercial borrowings from Wilmar Sugar Holdings Pte. Ltd.

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

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

(viii) There were no Scheme of Arrangements which has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, during the year.

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

Note 50:

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

Note 51:

Previous year's figures have been regrouped /reclassified wherever necessary to confirm to the current year presentation.