1. Current Assets include inventories and trade receivables pledged as Primary Security for Fund/ Non Fund based Working Capital arrangement with Banks amounting to ' 78500.00 Lakh. The utilisation of this arrangement as on reporting date is ' 5113.56 Lakh.

2. Inventory of finished goods, raw material, stores and spares and work in progress are valued as per the Accounting Policy of the Company

3. Finished Goods includes 21.36 lakh MT of saleable gypsum (Previous Year 22.00 lakh MT) amounting to ' 11977.68 lakh (Previous year ' 10161.25 lakh). During the current year, Company has changed the accounting policy of assessing the closing stock of gypsum. For assessing the closing stock of gypsum as on 31.03.2023, the saleable quantity has been assessed on the basis of physical verification conducted at the end of the financial year, as against the prior policy of arriving year end stock based on the technical study as on 30.09.2018 as adjusted by the production, consumption, despatch and sales, till the year end. The increase in the value of inventory as on 31.03.2023 due to the change in the accounting policy is ' 98.49 lakhs. The retrospective application of the change in policy is impracticable.

4. Valuation of closing stock of factamfos and ammonium sulphate (at certain locations) is valued at net relaisable value, estimated with 50% of subsidy rate prevailing as on 31.03.2023, pending notification of new subsidy rates by the Government of India for the year 2023-24

5. Stores & Spares in transit includes Stores & Spares at site pending inspection ' 214.61 lakh (Previous year ' 116.13 lakh )

6. During the year 2021-22, company had detected irregularities in the physical stock to the tune of 543.60 MT of Factamfos and 60.50 MT in Ammonium Sulphate at Chikmagalur Depot valued at ' 218.50 lakhs. Company had provided for the entire amount of ' 218.50 lakhs. The Company has since realised an aggregate amount of ' 63.85 lakhs being the sale value of 256.95 MT of Factamfos from various dealers during the year in connection with the above. However, the company has maintained the provision of ' 218.50 lakhs pending completion of investigation. Company has taken steps for recovery from transporters, dealers and warehouse (Refer Note. 13.3, 24.1,25.2, 27.1 & 35.5)

7. During the year, ' 2235.79 lakhs additional provision is made on account of the change in the accounting estimate being followed for the provision for obselete /non moving stores & spares. 90% provision has been made for non-moving stock of stores & spares, ageing five years and more, as on 31.03.2023, as against ageing of 10 years and more, which was being followed. The effect of the change in future periods is not disclosed because estimating it is impracticable.

1. Dues from statutory authorities include (i) Nil (net of provision) (Previous year ' 18301.45 lakh) towards Kerala Value Added Tax paid on procurement of Regasified Liquified Natural Gas, (ii) ' 1411.12 lakhs (Previous year ' 1411.12 lakhs ) (net of provision) being KVAT refund receivables, and (iii) ' 72.97 lakh (Previous Year ' 72.97 lakh) towards the amount paid against disputed demands pending appeal. In view of the uncertainty in the reimbursement of Value Added Tax (VAT) paid on Regasified Liquified Natural Gas (RLNG) by the Government of Kerala, Company has made provision during the year, for the entire VAT receivables on RLNG, ' 27418.54 lakhs as on 31.03.2023. The VAT reimbursement receivable on the RLNG procurement up to 31.03.2022 ' 18301.45 lakh has been charged as 'Provision for doubtful receivables' and VAT incurred on RLNG procurement during the year 2022-23, ' 9117.09 lakhs has been accounted as consumption of raw material / fuel in the Statement of Profit & loss.

2. Dues from Contractors include amount paid for materials supplied but rejected by the Company pending settlement ' 9.46 lakh (Previous year ' 1.32 lakh ) and an amount of '1353.19 lakh (Previous year '1353.19 lakh) including interest considered as recoverable on the basis of a bank guarantee invoked by the Company but stayed till the completion of arbitration. The Arbitration Award was passed during the year 2013-14, as per which the company is entitled to adjust an amount of ' 2798.29 lakh towards this advance and interest from the dues claimed by the contractor. The Company has gone on appeal against the award before the Hon' District Court, Ernakulam which has since stayed the award. The case is transferred to Commercial Court. Accordingly the Company demanded the banks to send the proceeds of encashment of bank guarantee along with interest. The bank rejected the claim and consequently the Company filed a suit against the bank before the Hon. High court of Mumbai for realization of amount, which are pending. However an amount of '1353.19 lakh only has been retained pending disposal of the case.

3. Other Current Assets, dues from contractors include ' 476.89 lakhs (previous year ' 476.89 lakhs) charged to transport contractor as per the terms and conditions of the contract, towards non delivery of goods to dealers at the assigned destinations. (Refer Note- 7.6, 24.1 & 25.2)

Retired assets held for disposal' includes Ammonia and Urea Plant at Cochin Division, which the Company had decided to scrap during the year 2009-10. These retired assets are retained in books at the written down value of ' 4065.02 lakhs (previous year- ' 4065.02 lakhs), which is lower than the estimated Net realisable value. The Company could not complete the disposal process since the matter is pending before the Court.

The Company has only one class of equity shares having par value of ' 10 per share. Each share holder is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding

1. Rights, Preference and restrictions attached to each class of shares including restrictions on the distribution of dividends and the repayment of capital. - Nil / Not Applicable

1. The Company and M/s.Rashtriya Chemicals & Fertilisers Ltd(RCF) had provided Corporate Guarantee to the lenders of M/s.FACT-RCF Building Products Ltd-the 50:50 joint venture between the Company and RCF. During the year 2018-19, RCF has settled the entire liability to the bankers, to the extent of '5100 lakh including 50% share of the Company ' 2550 lakh on the condition that the Company shall treat the amount paid by RCF on behalf of the Company as Inter-Corporate loan with a repayment period of five years, starting from the year 2020-21. The Company has paid three instalments due as per the agreement. The principal amount payable ' 510 lakhs (Previous year ' 510 lakhs) during the year 202324 has been classified under Current Liabilities - Financial Liabilities -Other Financial Liabilities . The remaining amount has been classified under Non Current Liabilities - Financial Liabilities - Borrowings. Interest rate applicable on the loan for the year 2022-23 is 7.38% p.a (Previous year- 6.50% p.a) 1. As per the decision of Government of India, during the year 2021-22 Company has framed a scheme for disbursement of wage revision arrears relating to the period from 01.01.1997 to 30.06.2001, in a phased manner, based on the direction of the Honourable Supreme Court of India. Dues to employees include Nil (previous year ' 2491.45 lakhs) towards 1997 arrears payable after one year (refer Note- 25.1 & 36.1)

1. The bills discounted are secured against the corresponding trade receivables

2. A plan loan of '100000.00 lakh bearing interest @13.50% per annum was released by the Government of India (GOI) on 29th March 2016 to maintain the operations of the Company. As per the order of Government of India, '.100000.00 lakh along with the earlier loan '28273 lakhs and interest outstanding has been converted into a single loan carrying interest @ 13.50% per annum with one year moratorium. As per the letter dated 12.01.2016, of the Ministry of Finance, GOI, sanctioning the loan, the total outstanding liability of the Company is '183672.00 lakh. The Company entered into an agreement with the Department of Fertilizers(DOF), GOI, agreeing to mortgage 408 acres of Company's land to secure repayment of the entire loan together with interest at the rate of 13.50% per annum on the amount outstanding as on 31.03.2017. The loan amount was reconciled and loan outstanding along with interest accumulated (upto 31.03.2017) has been arrived at '177048.75 lakh as on 31.03.2017. The loan along with interest is repayable in three or more equated installments within a period of 5 years ending by 2022. Accordingly, the entire principal amount, being '177048.75 lakhs (previous year- '177048.75 lakhs) has been classified under Current Liabilities-Current maturities of Long term Debt. The outstanding principal and interest as on 31.03.2022, has been confirmed with the balance of Government of India.

Company has submitted a Financial Restructuring proposal to Department of Fertilizers (DoF), Government of India (GoI), seeking approval for the waiver of interest on Government of India loan, conversion of loan amounting to '28273.00 lakhs into equity and conversion of loan amounting to '100000.00 lakhs as interest free loan, repayable in yearly installments. The financial restructuring proposal submitted by the Company is under the consideration of the Department of Fertilizers, Government of India. Pending approval by the Government of India, the loan taken from GoI and interest due thereon are accounted and disclosed as per the loan agreement dated March 3, 2016

1. As per the decision of Government of India, during the year 2021-22, Company has framed a scheme for disbursement of wage revision arrears relating to the period from 01.01.1997 to 30.06.2001, in a phased manner, based on the direction of the Honourable Supreme Court of India. Dues to employees include '5036.14 lakhs (previous year- ' 4738.64 lakhs) towards 1997 arrears, payable with in one year (refer Note- 19.1 & 36.1)

2. Other liabilities include amount charged from transport contractors as per the terms and conditions of the contract, towards non delivery of goods to dealers at the assigned destinations and amount withheld from warehouse.(Also Refer Note 7.6, 13.3 & 24.1)

1. Consequent to the implementation of Direct Benefit Transfer (DBT) subsidy scheme, subsidy income on fertilisers is recognised at the time of sale to dealers. However, the subsidy claim is generated at the rate applicable on the date of sale of fertilisers to ultimate beneficiary. The subsidy portion of the 90% of the stock with dealers (considering the recoverability), pending sale to ultimate beneficiary as on 31.03.2023, estimated at 50% of the subsidy rates rate prevailing as on 31.03.2023, on account of fall in raw material prices, pending notification of new subsidy rates by the Government of India for the year 2023-24 is '10278.27 lakh (Previous Year ' 49337.93 lakh).It will have an effect in the calculation of accrued income (subsidy) and Net Realisable Value of Finished Goods. (refer Note 11.1)

1. The contract for the barge transportation of Ammonia awarded to a private company has been cancelled void ab initio during 2004-05 by the Company. The Contractor claimed '78489.75 lakh including interest till 31.03.2013 before the arbitrator .The arbitrator has passed an award during the year 2013-14 in favour of the contractor for '17308.04 lakh including interest as on 31.12.2013 .As per the award, the mobilisation advance paid by the Company to the contractor along with interest of 2798.29 lakh is to be adjusted against the said award. The Company has not accepted the award on legal and factual grounds and has challenged the award before the Hon' District Court ,Ernakulam which has since stayed the award Company has been accounting interest on mobilization advance and creating equivalent provision until 31.03.2022. Considering the uncertainty in the receipt of the interest on mobilization advance, Company has discontinued accounting of the interest income from the financial year 2022-23 and the corresponding provision thereon. The interest on mobilization advance for 2022-23 amounting to '5385.59 lakhs has been disclosed as Contingent Asset under note No 50

2. Research and Development Expenditure includes expenditure towards salary ' 35.39 lakh (Previous year ' 75.21 lakh), chemicals & stores ' 0.19 lakh (Previous year 0.67 lakh) and depreciation ' 0.09 lakh (Previous year ' 0.09 lakh).

3. Miscellaneous Expenses includes Directors travel amounting to ' 13.47 lakh (Previous year ' 3.79 lakh)

4. Differences noticed ( Excess(-)/Shortage) on perpetual verification of stores and spares compared to book records have been adjusted in the books of accounts, which for Current year is ' 7.68 lakh (Previous year ' 6.09 lakh)

5. During the year 2021-22, company noticed 543.60 MT of shortages in physical stock of Factamfos and 60.50 MT in Ammonium Sulphate in certain warehouses of Karnataka state. The value of the shortage '218.50 lakhs had been provided during the year 2021-22. (Refer Note 7.6 & 27.1)

6. In view of the uncertainty in the reimbursement of Value Added Tax (VAT) paid on Regasified Liquified Natural Gas (RLNG) by the Government of Kerala, Company has made provision during the year, for the entire VAT receivables on RLNG, '27418.54 lakhs as on 31.03.2023. The VAT reimbursement receivable on the RLNG procurement up to 31.03.2022 ' 18301.45 lakh has been charged as 'Provision for doubtful receivables' (Refer Note 13.1)

7. Expenses towards Corporate Social Responsibility

The Company is liable to spend '471.39 lakhs on Corporate social responsibility, being 2% of the average net profit for the immediately preceding three financial years, as per section 198 of the Companies Act 2013. The Company has an excess CSR expenditure of ' 50.21 lakhs carried forward from previous year 2021-22 eligible to be setoff during the current financial year. Company has spent an amount of ' 35.31 lakh towards Corporate Social Responsibility, during the current financial year 202223. ' 385.87 lakhs remaining unspent as on 31.03.2023, earmarked for identified projects have been transferred to a separate bank account named 'Unspent CSR Account 2022-23' on 28.04.2023, as per the provisions of Section 135 (6) of the Companies Act

40. Fair Value Hierarchy

The management has assessed that its financial assets and liabilities like cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The following methods and assumptions were used to estimate the fair values for the given below financial assets.

Investment in Unquoted Equity Shares

The fair values of the unquoted equity shares have been estimated using NAV model.

Derivatives not designated as hedges

Foreign exchange forward contracts if entered in to, are valued using valuation techniques, which employs the use of market observable inputs (i.e. based on inputs/statement of position received from banks).

Investment Properties

The value of the investment properties are based on the information available in Government of Kerala fair value notification, market conditions etc.

Level 1 hierarchy is for financial instruments with quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges are to be valued using the closing price as at the reporting period. The mutual funds are to be valued using the closing NAV. Company do not have any such investment, as on the reporting date of current year and previous year.

The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in Level 3.

Operating Leases A. Leases as lessor

The Company leases out its investment property on operating lease basis

B. Leases as lessee

The Lease Liability is measured at the present value of remaining lease payments at the date of initial application and Right-of-use asset has been recognized at an amount equal to Lease Liability adjusted by an amount of any prepaid expenses. . Under Ind AS 116 "Leases”, at commencement of lease, the Company recognizes Right-of-use asset and corresponding Lease Liability, at State Bank of India 1 year MCLR. Right-of-use asset is depreciated over lease term on systematic basis and Interest on Lease Liability is charged to Statement of Profit and Loss as Finance cost.

Recognition of right of use Asset and corresponding lease liability, as per IndAS 116, has been made in respect of the property taken for lease (Operating lease) for the purpose of storage and handling of Raw Materials, at Willington Island and for Guest House facility at New Delhi

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's trade and other receivables, cash and cash equivalents and other bank balances. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.

(i) Trade and other receivables

Credit risk in respect of trade and other receivables is managed through credit approvals, establishing credit limits and monitoring the creditworthiness of customers to allow credit terms in the normal course of business.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to ¹ 47887.48 lakh (Previous year ' 17522.98 lakh) of which ' 40259.93 lakh (previous year ' 13011.42 lakh) due from Government of India relating to subsidy receivable. Trade receivables mainly constitute subsidy receivable from the Government of India and from services rendered.

Expected credit loss assessment for Trade and other receivables

The Company has been consistently following a policy of creating 100% provision for the unsecured portion of the trade receivables that are more than three years old, except subsidy receivables from Government of India, wherein allowance for loss is made after analysis of possibility of realisation.

(ii) Cash and Cash equivalents and Other Bank Balances

The Company held cash and cash equivalents and other bank balances of ' 231947.13 lakhs at 31st March 2023 (31st March 2022: ' 187646.39 lakhs). The Cash equivalents are held with banks with good credit ratings and financial position. Also, the Company invests its short term surplus funds in bank fixed deposits, which carry no / low market risks for short duration and therefore does not expose the Company to credit risk.

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.

Liquidity risk is managed by Company through effective fund management. Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of credit facilities to meet obligations when due. Due to the dynamic nature of the underlying businesses, treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the company's liquidity position and cash and cash equivalents on the basis of expected cash flows. ¹

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 prices, such as equity price risk and commodity risk. .

(i) Currency Risk

The Company's activities are exposed primarily to the financial risk of changes in foreign currency rates. To mitigate the foreign currency risk, the company is closely monitoring the market trend to take appropriate action

(ii) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates, in cases where the borrowings are measured at fair value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates

Exposure to interest rate risk:

The Company's investments are in Bank fixed deposits wherein the interest rates are fixed, as on the reporting date.

The Company do not have any borrowing with banks, other than discounting of bills, as on the reporting date. The interest rate on the Company's borrowings from Government of India is not fluctuating. The rate of interest on Intercorporate loan from Rashtriya Chemicals and Fertilisers Ltd is subject to change, based on the lowest cost of their working capital finance. The Intercorporate loan outstanding as on 31.03.2023 is ' 1020 lakh and the applicable interest as on the reporting date is 7.38%.

(iii) Commodity rate risk

The Company's profitability gets affected by the price differential (also known as Margin) between prices of products (output) and the price of the raw materials used in production (input).

Company has entered in to agreement with suppliers of one of the major raw materials, Regassified Liquified Natural Gas and sulphur, to mitigate the fluctuation in market price.

(iv) Price Risk

The Company's exposure to equity investments price risk arises from investments held by the Company and classified in the financial statements at fair value through OCI. The Company intends to hold these investments for long-term for better returns and price risk will not be significant from a long term perspective.

CAPITAL MANAGEMENT

The Company's primary objective is to maximize the shareholders' value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. Presently, the Company sources 100 % of its capex requirement from the internal accruals. The Company, being a Public sector undertaking, is governed by the guidelines of the Department of Investment & Public Asset Management (DIPAM), which specifies the minimum percentage of dividend to be declared. Taking in to consideration the future capex requirements, the Company considers the payment of dividend at the appropriate rates.

43. Disclosure under Ind AS 24 on related party transactions are given below

Since Government of India owns 90% of the Company's equity share capital (under the administrative control of Ministry of Chemicals and Fertilizers), the disclosures relating to transactions with the Government and other Government controlled entities have been reported in accordance with para 26 of Ind AS 24.

Certain transactions are carried out with other government related entities for purchase of Gases, for procurement of Raw Materials / Finished Goods, Assets / Spare Parts from Original equipment manufacturers, which are significant in terms of value, the details of which are as under:

The Company and M/s.Rashtriya Chemicals & Fertilisers Ltd(RCF) had provided Corporate Guarantee to the lenders of M/s.FACT-RCF Building Products Ltd-the 50:50 joint venture between the Company and RCF. During the year 2018-19, RCF had settled the entire liability to the bankers, to the extent of ' 5100 lakhs including 50% share of the Company ' 2550 lakhs on the condition that the Company shall treat the amount paid by RCF on behalf of the Company as Inter-Corporate loan. Accordingly, the amount of ' 2550 lakhs has been classified as Intercorporate loan. The principal amount outstanding as on 31.03.2023 is ' 1020 lakh (Previous year ' 1530 lakh). Interest rate applicable on the loan for the year 2022-23 is 7.38% p.a. (Previous year- 6.50% p.a).

Department of Fertilisers, Govt of India, had accorded the approval (16 November 2018) to The Fertilisers and Chemicals Travancore Limited (FACT) for additional investment of ' 2925 lakh to the equity share capital of FACT-RCF-Building Products Limited (FRBL).FRBL is a joint venture between FACT and Rashtriya Chemicals & Fertilisers Limited (RCF). FACT in its 75th Annual General Meeting approved the additional investment in FRBL. Against approval received for ' 2925 lakh, FRBL had issued equity shares amounting to ' 1518 lakh towards gypsum supplied and other services provided by FACT during the period from 20102013. Further, FRBL during the year 2022-23 has allotted shares to FACT amounting to ' 235.70 lakhs. Balance Equity Shares against which gypsum and other services provided by the FACT during 2014-2017, are pending for allotment by FRBL. The same has been disclosed under advances to related parties. Further, supply of gypsum from FACT amounting to ' 239 lakh is still pending as on 31 March 2023 to complete the above additional investment.

During the year 2009-10, the Company has along with Department of Factories and Boilers, Government of

Kerala, formed a society under the Travancore Literary, Scientific and Charitable Societies Act 1955 with the objective of conducting courses relating to welding technologies with a grant of ' 1 Crore from the Government of Kerala, under the name Kerala institute of Welding and Research. The contribution from the Company is only provision of its existing facilities of Training School. The accounts of the society are not consolidated as society is formed with an objective of not obtaining any economic benefits from its activities and is considered immaterial to the Company's activity.

2) Key Management Personnel

1 Shri Kishor Rungta, Chairman and Managing Director (from 02.02.2019)

2 Shri.Anupam Misra, Director (Marketing) (from 14.07.2020)

3 Shri.S.Sakthimani, Director (Finance) & Chief Financial Officer (From 08.03.2021)

4 Shri.Kesavan Nampoori A.S, Director (Technical) (From 22.03.2021 to 30.09.2022)

5 Dr.Jayachandran.K, Director (Technical) (From 03.03.2023)

6 Shri K V Balakrishnan Nair, Company Secretary & Executive Director (Finance) up to 31.05.2022

7 Smt.Susan Abraham, Company Secretary from 15.07.2022 ** On payment basis

The whole time Directors have been allowed the use of company car and for private journey upto a ceiling of 9000 kms. per year, on payment as prescribed by the Government.

Gratuity and leave encashment benefit accrued to the Directors have not been disclosed as the contribution payable has been provided in the accounts and separate figures are not ascertainable.

1 "77 _

1. FACT-RCF BUILDING PRODUCTS LTD.:- A Joint venture Company with Rashtriya Chemicals and Fertilizers Limited (RCF) for manufacture of rapid building materials from Gypsum at Kochi.

2. Kerala Enviro Infrastructure Ltd. (KEIL) is a public limited company formed as Special Purpose Vehicle and promoted by the Kerala State Industrial Development Corporation (KSIDC) in association with various industries in the State for establishing Common Treatment, Storage and Disposal Facility (CTSDF) for solid hazardous industrial waste in the State of Kerala.

3. The percentage of Company's shareholding in M/s.Kerala Enviro Infrastructure Limited as on 31.03.2022 was 21.75%. The Company's percentage of share holding in the equity shares of Kerala Enviro Infrastructure Ltd as on 31.03.2023 has reduced to 15.91 %, on account of additional investment by other share holders.. As the investment as on 31.03.2023, is less than 20%, the investment has been re-classified as 'Other Investments'.

* Owing to the company's share of losses exceeding its interest in the joint venture recognising the share of loss stands discontinued. Accordingly company has not recognized share of loss of ' 395.25 lakh for the year (Previous Year ' 470.50 lakh) and ' 10844.68 lakhs cumulatively upto the year ended 31.03.2023 (' 10449.43 lakh cumulatively upto the year ended 31.03.2022).

46. EMPLOYEE BENEFITS

General Description of Defined Contribution Plan

Contributory Superannuation Scheme-The scheme is aimed to provide superannuation benefits to the employees. Every year company contributes ' 100 to the fund.

General Description of Defined Benefit Plan A Leave Encashment and Gratuity

The company operates gratuity plan where in every employee is entitled to the benefit equivalent to fifteen days salary last drawn for each completed year of service. The same is payable on death , separation from service or retirement , whichever is earlier. The benefit vests after five years of continuous service. The company has been accounting for provision on account of leave encashment on retirement based on actuarial valuation carried out as at the balance sheet date.

B Provident Fund

The Provident Fund contributions are made to Trusts administered by the company. The interest rate payable to the members of the Trust shall not be lower than statutory rate of interest declared by the Central Government under the Employees Provident Funds and Miscellaneous Provisions Act 1952.

During the year an amount of ' 1908.42 lakh ( Previous Year ' 1705.21 lakh) has been charged to Statement of Profit & Loss towards contribution by the Company. In terms of the Ind AS 19 , the Provident Fund Trust set up by the company is treated as Defined Benefit Plan since the company has to meet the shortfall in the fund assets , if any.

During the year, vide, G.O(Rt.)No. 354/2023/LBR dated 23.03.2023 Government of Kerala (appropriate authority as per Para 27A of Provident Fund and Miscellaneous Provisions Act, 1952) withdrew exemption granted for the Company in respect of The FACT Employees Provident Fund, Udyogamandal Division on account of three years continuous loss incurred by the company . Company has challenged the same and filed a writ petition before the Hon' High Court of Kerala and the notification has been stayed by the Honorable High Court. The matter is still pending.

The Gratuity scheme is a final salary defined benefit plan that provides for a lumpsum payment at the time of separation; based on scheme rules the benefits are calculated on the basis of last drawn salary and the period of service at the time of separation and paid as lumpsum. There is a vesting period of 5 years. The design entiles the following risks that affect the liabilities and cash flows

Interest rates risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall the defined benefit obligation will tend to increase. Thus the plan exposes the Company to the risk of fall in interest rates. Some times the fall can be permanent due to a paradigm shift in interest rate scenarios because of economic or fiscal reasons. 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). Even for funded schemes a paradigm downward shift in bond yields may affect the reinvestment yields and may increase ultimate costs.

Salary inflation risk:

The present value of the defined benefit plan is calculated with the assumption of salary escalation rate(SER) which is applied to find the salary of plan participants in future at the time of separation Higher than expected increases in salary will increase the defined benefit obligation and will have an exponential effect.

Retirement age:

It should be noted that in case of employees above retirement age for the purpose of valuation it is assumed they will retire immediately & benefit is considered up to actual retirement age.

Demographic risks:

Demographic assumptions are required to assess the timing and probability of a payment taking place. This is the risk of volatility of results due to unexpected nature of decrements that include mortality attrition

disability and retirement. The effects of this decrement on the DBO depend upon the combination salary increase discount rate and vesting criteria and therefore not very straight forward. It is important not to overstate withdrawal rate because the cost of retirement benefit of a short serving employees will be less compared to long service employees.

Asset Liability Mismatch:

This will come into play unless the funds are invested with a term of the assets replicating the term of the liability.

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 than 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 than 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 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.

Liquidity Risk

This is the risk that the Company is not able to meet the short-term gratuity pay outs. This may arise due to non availability of enough cash / cash equivalent to meet the liabilities or holding of liquid assets not being sold in time..

Employees with high salaries and long durations of service 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.

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.

Legislative risk/Regulatory 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. The new labour code is a case in point. And the same will have to be recognized immediately in the year when any such amendment is effective.

(ii) Sensitivity Analysis

How the DBO would have been affected by 100 basis points changes in the actuarial assumptions namely discount rates salary growth Attrition & Mortality is shown below

P.U.C method has been used. If an employee's service in later years will lead to a materially higher level of benefit than in earlier years these benefits are attributed on a straight-line basis. The limitations are that in assessing the change other parameters are kept constant. As some of the assumptions may be correlated it is unlikely that changes in assumptions will occur in isolation of one another.

There is no change from the previous period in the methods and assumptions used in the preparation of above analysis, except that the base rates have changed

(iii) Asset Liability Matching Strategies GRATUITY-EMPLOYEES :

Insurer Administered Fund

The company has funded the liability with the insurance company. The entire investible assets are managed by the fund managers of the Insurance company and the Asset Values as informed by the Insurance

Company has been taken for the valuation purpose. 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 a increase in liability without corresponding increase in the asset). .

Thus the Company is exposed to movement in interest rate (in particular the significant fall in interest Rates which should result in a increase in liability without corresponding increase in the asset).

GRATUITY-CASUAL LABOUR (CLR)

Pay As You Go Method

The company is only making book provisions for the entire Gratuity Liability on the valuation and follows a 'pay as you go' system to meet the liabilities as and when they fall due. Therefore the scheme is fully unfunded, and no assets are maintained by the company and asset values are taken as zero; there is liquidity risk in that they may run out of cash.

(iv) Other disclosures GRATUITY-EMPLOYEES :

The company has started funding the liability through the medium of an insurance company and regular assessment is made by the Company of the increase in liability and contributions are being made to maintain the fund and is subject to the credit risk of the insurance company and asset liability mismatch risk of the investments .

The leave scheme is a final salary defined benefit plan, that provides for a lumpsum payment at the time of separation; based on scheme rules the benefits are calculated on the basis of last drawn salary and the leave count at the time of separation and paid as lumpsum.

The design entiles the following risks that affect the liabilities and cash flows,

Interest rates risk

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risks:

This is the risk of volatility of results due to unexpected nature of decrements that include mortality attrition, disability and retirement. The effects of this decrement on the DBO depend upon the combination salary increase, discount rate, and vesting criteria and therefore not very straight forward. It is important not to overstate withdrawal rate because the cost of retirement benefit of a short serving employees will be less

P.U.C method has been used for sensitivity analysis. If an employee's service in later years will lead to a materially higher level of benefit than in earlier years, these benefits are attributed on a straight-line basis. The limitations are that in assessing the change other parameters are kept constant. As some of the assumptions may be correlated, it is unlikely that changes in assumptions will occur in isolation of one another.

There is no change from the previous period in the methods and assumptions used in the preparation of above analysis, except that the base rates have changed

(iii) Actuarial measurements as on March 31,2023

The company has not started funding the Leave liability & has been following pay as you go method for settlement of the liability

1RA -

48.1. Sales Tax/ Value Added Tax / Entry Tax includes Nil (previous year '16614.87 lakh- including interest up to 31.03.2022) towards differential tax demand in respect of the year 2011-12 on the disputed turnover, consequent to withdrawal of the demand notice during the year, by the Assessing Authority in the rectification of the assessment order.

48.2. The contract for the barge transportation of Ammonia awarded to a private company has been cancelled void ab initio during 2004-05 by the Company. The Contractor claimed '178489.75 lakh including interest till 31.03.2013 before the arbitrator .The arbitrator has passed an award during the year 2013-14 in favour of the contractor for 17308.04 lakh including interest as on 31.12.2013 .As per the award, the mobilisation advance paid by the Company to the contractor along with interest of

1. Current Assets include inventories and trade receivables pledged as Primary Security for Fund/ Non Fund based Working Capital arrangement with Banks amounting to ' 78500.00 Lakh. The utilisation of this arrangement as on reporting date is ' 5113.56 Lakh.

2. Inventory of finished goods, raw material, stores and spares and work in progress are valued as per the Accounting Policy of the Company

3. Finished Goods includes 21.36 lakh MT of saleable gypsum (Previous Year 22.00 lakh MT) amounting to ' 11977.68 lakh (Previous year ' 10161.25 lakh). During the current year, Company has changed the accounting policy of assessing the closing stock of gypsum. For assessing the closing stock of gypsum as on 31.03.2023, the saleable quantity has been assessed on the basis of physical verification conducted at the end of the financial year, as against the prior policy of arriving year end stock based on the technical study as on 30.09.2018 as adjusted by the production, consumption, despatch and sales, till the year end. The increase in the value of inventory as on 31.03.2023 due to the change in the accounting policy is ' 98.49 lakhs. The retrospective application of the change in policy is impracticable.

4. Valuation of closing stock of factamfos and ammonium sulphate (at certain locations) is valued at net relaisable value, estimated with 50% of subsidy rate prevailing as on 31.03.2023, pending notification of new subsidy rates by the Government of India for the year 2023-24

5. Stores & Spares in transit includes Stores & Spares at site pending inspection ' 214.61 lakh (Previous year ' 116.13 lakh )

6. During the year 2021-22, company had detected irregularities in the physical stock to the tune of 543.60 MT of Factamfos and 60.50 MT in Ammonium Sulphate at Chikmagalur Depot valued at ' 218.50 lakhs. Company had provided for the entire amount of ' 218.50 lakhs. The Company has since realised an aggregate amount of ' 63.85 lakhs being the sale value of 256.95 MT of Factamfos from various dealers during the year in connection with the above. However, the company has maintained the provision of ' 218.50 lakhs pending completion of investigation. Company has taken steps for recovery from transporters, dealers and warehouse (Refer Note. 13.3, 24.1,25.2, 27.1 & 35.5)

7. During the year, ' 2235.79 lakhs additional provision is made on account of the change in the accounting estimate being followed for the provision for obselete /non moving stores & spares. 90% provision has been made for non-moving stock of stores & spares, ageing five years and more, as on 31.03.2023, as against ageing of 10 years and more, which was being followed. The effect of the change in future periods is not disclosed because estimating it is impracticable.

1. Dues from statutory authorities include (i) Nil (net of provision) (Previous year ' 18301.45 lakh) towards Kerala Value Added Tax paid on procurement of Regasified Liquified Natural Gas, (ii) ' 1411.12 lakhs (Previous year ' 1411.12 lakhs ) (net of provision) being KVAT refund receivables, and (iii) ' 72.97 lakh (Previous Year ' 72.97 lakh) towards the amount paid against disputed demands pending appeal. In view of the uncertainty in the reimbursement of Value Added Tax (VAT) paid on Regasified Liquified Natural Gas (RLNG) by the Government of Kerala, Company has made provision during the year, for the entire VAT receivables on RLNG, ' 27418.54 lakhs as on 31.03.2023. The VAT reimbursement receivable on the RLNG procurement up to 31.03.2022 ' 18301.45 lakh has been charged as 'Provision for doubtful receivables' and VAT incurred on RLNG procurement during the year 2022-23, ' 9117.09 lakhs has been accounted as consumption of raw material / fuel in the Statement of Profit & loss.

2. Dues from Contractors include amount paid for materials supplied but rejected by the Company pending settlement ' 9.46 lakh (Previous year ' 1.32 lakh ) and an amount of '1353.19 lakh (Previous year '1353.19 lakh) including interest considered as recoverable on the basis of a bank guarantee invoked by the Company but stayed till the completion of arbitration. The Arbitration Award was passed during the year 2013-14, as per which the company is entitled to adjust an amount of ' 2798.29 lakh towards this advance and interest from the dues claimed by the contractor. The Company has gone on appeal against the award before the Hon' District Court, Ernakulam which has since stayed the award. The case is transferred to Commercial Court. Accordingly the Company demanded the banks to send the proceeds of encashment of bank guarantee along with interest. The bank rejected the claim and consequently the Company filed a suit against the bank before the Hon. High court of Mumbai for realization of amount, which are pending. However an amount of '1353.19 lakh only has been retained pending disposal of the case.

3. Other Current Assets, dues from contractors include ' 476.89 lakhs (previous year ' 476.89 lakhs) charged to transport contractor as per the terms and conditions of the contract, towards non delivery of goods to dealers at the assigned destinations. (Refer Note- 7.6, 24.1 & 25.2)

Retired assets held for disposal' includes Ammonia and Urea Plant at Cochin Division, which the Company had decided to scrap during the year 2009-10. These retired assets are retained in books at the written down value of ' 4065.02 lakhs (previous year- ' 4065.02 lakhs), which is lower than the estimated Net realisable value. The Company could not complete the disposal process since the matter is pending before the Court.

The Company has only one class of equity shares having par value of ' 10 per share. Each share holder is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding

1. Rights, Preference and restrictions attached to each class of shares including restrictions on the distribution of dividends and the repayment of capital. - Nil / Not Applicable

1. The Company and M/s.Rashtriya Chemicals & Fertilisers Ltd(RCF) had provided Corporate Guarantee to the lenders of M/s.FACT-RCF Building Products Ltd-the 50:50 joint venture between the Company and RCF. During the year 2018-19, RCF has settled the entire liability to the bankers, to the extent of '5100 lakh including 50% share of the Company ' 2550 lakh on the condition that the Company shall treat the amount paid by RCF on behalf of the Company as Inter-Corporate loan with a repayment period of five years, starting from the year 2020-21. The Company has paid three instalments due as per the agreement. The principal amount payable ' 510 lakhs (Previous year ' 510 lakhs) during the year 202324 has been classified under Current Liabilities - Financial Liabilities -Other Financial Liabilities . The remaining amount has been classified under Non Current Liabilities - Financial Liabilities - Borrowings. Interest rate applicable on the loan for the year 2022-23 is 7.38% p.a (Previous year- 6.50% p.a) ²

1. The bills discounted are secured against the corresponding trade receivables

2. A plan loan of '100000.00 lakh bearing interest @13.50% per annum was released by the Government of India (GOI) on 29th March 2016 to maintain the operations of the Company. As per the order of Government of India, '.100000.00 lakh along with the earlier loan '28273 lakhs and interest outstanding has been converted into a single loan carrying interest @ 13.50% per annum with one year moratorium. As per the letter dated 12.01.2016, of the Ministry of Finance, GOI, sanctioning the loan, the total outstanding liability of the Company is '183672.00 lakh. The Company entered into an agreement with the Department of Fertilizers(DOF), GOI, agreeing to mortgage 408 acres of Company's land to secure repayment of the entire loan together with interest at the rate of 13.50% per annum on the amount outstanding as on 31.03.2017. The loan amount was reconciled and loan outstanding along with interest accumulated (upto 31.03.2017) has been arrived at '177048.75 lakh as on 31.03.2017. The loan along with interest is repayable in three or more equated installments within a period of 5 years ending by 2022. Accordingly, the entire principal amount, being '177048.75 lakhs (previous year- '177048.75 lakhs) has been classified under Current Liabilities-Current maturities of Long term Debt. The outstanding principal and interest as on 31.03.2022, has been confirmed with the balance of Government of India.

Company has submitted a Financial Restructuring proposal to Department of Fertilizers (DoF), Government of India (GoI), seeking approval for the waiver of interest on Government of India loan, conversion of loan amounting to '28273.00 lakhs into equity and conversion of loan amounting to '100000.00 lakhs as interest free loan, repayable in yearly installments. The financial restructuring proposal submitted by the Company is under the consideration of the Department of Fertilizers, Government of India. Pending approval by the Government of India, the loan taken from GoI and interest due thereon are accounted and disclosed as per the loan agreement dated March 3, 2016

1. As per the decision of Government of India, during the year 2021-22, Company has framed a scheme for disbursement of wage revision arrears relating to the period from 01.01.1997 to 30.06.2001, in a phased manner, based on the direction of the Honourable Supreme Court of India. Dues to employees include '5036.14 lakhs (previous year- ' 4738.64 lakhs) towards 1997 arrears, payable with in one year (refer Note- 19.1 & 36.1)

2. Other liabilities include amount charged from transport contractors as per the terms and conditions of the contract, towards non delivery of goods to dealers at the assigned destinations and amount withheld from warehouse.(Also Refer Note 7.6, 13.3 & 24.1)

1. Consequent to the implementation of Direct Benefit Transfer (DBT) subsidy scheme, subsidy income on fertilisers is recognised at the time of sale to dealers. However, the subsidy claim is generated at the rate applicable on the date of sale of fertilisers to ultimate beneficiary. The subsidy portion of the 90% of the stock with dealers (considering the recoverability), pending sale to ultimate beneficiary as on 31.03.2023, estimated at 50% of the subsidy rates rate prevailing as on 31.03.2023, on account of fall in raw material prices, pending notification of new subsidy rates by the Government of India for the year 2023-24 is '10278.27 lakh (Previous Year ' 49337.93 lakh).It will have an effect in the calculation of accrued income (subsidy) and Net Realisable Value of Finished Goods. (refer Note 11.1)

1. The contract for the barge transportation of Ammonia awarded to a private company has been cancelled void ab initio during 2004-05 by the Company. The Contractor claimed '78489.75 lakh including interest till 31.03.2013 before the arbitrator .The arbitrator has passed an award during the year 2013-14 in favour of the contractor for '17308.04 lakh including interest as on 31.12.2013 .As per the award, the mobilisation advance paid by the Company to the contractor along with interest of 2798.29 lakh is to be adjusted against the said award. The Company has not accepted the award on legal and factual grounds and has challenged the award before the Hon' District Court ,Ernakulam which has since stayed the award Company has been accounting interest on mobilization advance and creating equivalent provision until 31.03.2022. Considering the uncertainty in the receipt of the interest on mobilization advance, Company has discontinued accounting of the interest income from the financial year 2022-23 and the corresponding provision thereon. The interest on mobilization advance for 2022-23 amounting to '5385.59 lakhs has been disclosed as Contingent Asset under note No 50

2. Research and Development Expenditure includes expenditure towards salary ' 35.39 lakh (Previous year ' 75.21 lakh), chemicals & stores ' 0.19 lakh (Previous year 0.67 lakh) and depreciation ' 0.09 lakh (Previous year ' 0.09 lakh).

3. Miscellaneous Expenses includes Directors travel amounting to ' 13.47 lakh (Previous year ' 3.79 lakh)

4. Differences noticed ( Excess(-)/Shortage) on perpetual verification of stores and spares compared to book records have been adjusted in the books of accounts, which for Current year is ' 7.68 lakh (Previous year ' 6.09 lakh)

5. During the year 2021-22, company noticed 543.60 MT of shortages in physical stock of Factamfos and 60.50 MT in Ammonium Sulphate in certain warehouses of Karnataka state. The value of the shortage '218.50 lakhs had been provided during the year 2021-22. (Refer Note 7.6 & 27.1)

6. In view of the uncertainty in the reimbursement of Value Added Tax (VAT) paid on Regasified Liquified Natural Gas (RLNG) by the Government of Kerala, Company has made provision during the year, for the entire VAT receivables on RLNG, '27418.54 lakhs as on 31.03.2023. The VAT reimbursement receivable on the RLNG procurement up to 31.03.2022 ' 18301.45 lakh has been charged as 'Provision for doubtful receivables' (Refer Note 13.1)

7. Expenses towards Corporate Social Responsibility

The Company is liable to spend '471.39 lakhs on Corporate social responsibility, being 2% of the average net profit for the immediately preceding three financial years, as per section 198 of the Companies Act 2013. The Company has an excess CSR expenditure of ' 50.21 lakhs carried forward from previous year 2021-22 eligible to be setoff during the current financial year. Company has spent an amount of ' 35.31 lakh towards Corporate Social Responsibility, during the current financial year 202223. ' 385.87 lakhs remaining unspent as on 31.03.2023, earmarked for identified projects have been transferred to a separate bank account named 'Unspent CSR Account 2022-23' on 28.04.2023, as per the provisions of Section 135 (6) of the Companies Act

40. Fair Value Hierarchy

The management has assessed that its financial assets and liabilities like cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The following methods and assumptions were used to estimate the fair values for the given below financial assets.

Investment in Unquoted Equity Shares

The fair values of the unquoted equity shares have been estimated using NAV model.

Derivatives not designated as hedges

Foreign exchange forward contracts if entered in to, are valued using valuation techniques, which employs the use of market observable inputs (i.e. based on inputs/statement of position received from banks).

Investment Properties

The value of the investment properties are based on the information available in Government of Kerala fair value notification, market conditions etc.

Level 1 hierarchy is for financial instruments with quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges are to be valued using the closing price as at the reporting period. The mutual funds are to be valued using the closing NAV. Company do not have any such investment, as on the reporting date of current year and previous year.

The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in Level 3.

Operating Leases A. Leases as lessor

The Company leases out its investment property on operating lease basis

B. Leases as lessee

The Lease Liability is measured at the present value of remaining lease payments at the date of initial application and Right-of-use asset has been recognized at an amount equal to Lease Liability adjusted by an amount of any prepaid expenses. . Under Ind AS 116 "Leases”, at commencement of lease, the Company recognizes Right-of-use asset and corresponding Lease Liability, at State Bank of India 1 year MCLR. Right-of-use asset is depreciated over lease term on systematic basis and Interest on Lease Liability is charged to Statement of Profit and Loss as Finance cost.

Recognition of right of use Asset and corresponding lease liability, as per IndAS 116, has been made in respect of the property taken for lease (Operating lease) for the purpose of storage and handling of Raw Materials, at Willington Island and for Guest House facility at New Delhi

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's trade and other receivables, cash and cash equivalents and other bank balances. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.

(i) Trade and other receivables

Credit risk in respect of trade and other receivables is managed through credit approvals, establishing credit limits and monitoring the creditworthiness of customers to allow credit terms in the normal course of business.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to ³ 47887.48 lakh (Previous year ' 17522.98 lakh) of which ' 40259.93 lakh (previous year ' 13011.42 lakh) due from Government of India relating to subsidy receivable. Trade receivables mainly constitute subsidy receivable from the Government of India and from services rendered.

Expected credit loss assessment for Trade and other receivables

The Company has been consistently following a policy of creating 100% provision for the unsecured portion of the trade receivables that are more than three years old, except subsidy receivables from Government of India, wherein allowance for loss is made after analysis of possibility of realisation.

(ii) Cash and Cash equivalents and Other Bank Balances

The Company held cash and cash equivalents and other bank balances of ' 231947.13 lakhs at 31st March 2023 (31st March 2022: ' 187646.39 lakhs). The Cash equivalents are held with banks with good credit ratings and financial position. Also, the Company invests its short term surplus funds in bank fixed deposits, which carry no / low market risks for short duration and therefore does not expose the Company to credit risk.

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.

Liquidity risk is managed by Company through effective fund management. Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of credit facilities to meet obligations when due. Due to the dynamic nature of the underlying businesses, treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the company's liquidity position and cash and cash equivalents on the basis of expected cash flows. ³

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 prices, such as equity price risk and commodity risk. .

(i) Currency Risk

The Company's activities are exposed primarily to the financial risk of changes in foreign currency rates. To mitigate the foreign currency risk, the company is closely monitoring the market trend to take appropriate action

(ii) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates, in cases where the borrowings are measured at fair value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates

Exposure to interest rate risk:

The Company's investments are in Bank fixed deposits wherein the interest rates are fixed, as on the reporting date.

The Company do not have any borrowing with banks, other than discounting of bills, as on the reporting date. The interest rate on the Company's borrowings from Government of India is not fluctuating. The rate of interest on Intercorporate loan from Rashtriya Chemicals and Fertilisers Ltd is subject to change, based on the lowest cost of their working capital finance. The Intercorporate loan outstanding as on 31.03.2023 is ' 1020 lakh and the applicable interest as on the reporting date is 7.38%.

(iii) Commodity rate risk

The Company's profitability gets affected by the price differential (also known as Margin) between prices of products (output) and the price of the raw materials used in production (input).

Company has entered in to agreement with suppliers of one of the major raw materials, Regassified Liquified Natural Gas and sulphur, to mitigate the fluctuation in market price.

(iv) Price Risk

The Company's exposure to equity investments price risk arises from investments held by the Company and classified in the financial statements at fair value through OCI. The Company intends to hold these investments for long-term for better returns and price risk will not be significant from a long term perspective.

CAPITAL MANAGEMENT

The Company's primary objective is to maximize the shareholders' value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. Presently, the Company sources 100 % of its capex requirement from the internal accruals. The Company, being a Public sector undertaking, is governed by the guidelines of the Department of Investment & Public Asset Management (DIPAM), which specifies the minimum percentage of dividend to be declared. Taking in to consideration the future capex requirements, the Company considers the payment of dividend at the appropriate rates.

43. Disclosure under Ind AS 24 on related party transactions are given below

Since Government of India owns 90% of the Company's equity share capital (under the administrative control of Ministry of Chemicals and Fertilizers), the disclosures relating to transactions with the Government and other Government controlled entities have been reported in accordance with para 26 of Ind AS 24.

Certain transactions are carried out with other government related entities for purchase of Gases, for procurement of Raw Materials / Finished Goods, Assets / Spare Parts from Original equipment manufacturers, which are significant in terms of value, the details of which are as under:

The Company and M/s.Rashtriya Chemicals & Fertilisers Ltd(RCF) had provided Corporate Guarantee to the lenders of M/s.FACT-RCF Building Products Ltd-the 50:50 joint venture between the Company and RCF. During the year 2018-19, RCF had settled the entire liability to the bankers, to the extent of ' 5100 lakhs including 50% share of the Company ' 2550 lakhs on the condition that the Company shall treat the amount paid by RCF on behalf of the Company as Inter-Corporate loan. Accordingly, the amount of ' 2550 lakhs has been classified as Intercorporate loan. The principal amount outstanding as on 31.03.2023 is ' 1020 lakh (Previous year ' 1530 lakh). Interest rate applicable on the loan for the year 2022-23 is 7.38% p.a. (Previous year- 6.50% p.a).

Department of Fertilisers, Govt of India, had accorded the approval (16 November 2018) to The Fertilisers and Chemicals Travancore Limited (FACT) for additional investment of ' 2925 lakh to the equity share capital of FACT-RCF-Building Products Limited (FRBL).FRBL is a joint venture between FACT and Rashtriya Chemicals & Fertilisers Limited (RCF). FACT in its 75th Annual General Meeting approved the additional investment in FRBL. Against approval received for ' 2925 lakh, FRBL had issued equity shares amounting to ' 1518 lakh towards gypsum supplied and other services provided by FACT during the period from 20102013. Further, FRBL during the year 2022-23 has allotted shares to FACT amounting to ' 235.70 lakhs. Balance Equity Shares against which gypsum and other services provided by the FACT during 2014-2017, are pending for allotment by FRBL. The same has been disclosed under advances to related parties. Further, supply of gypsum from FACT amounting to ' 239 lakh is still pending as on 31 March 2023 to complete the above additional investment.

During the year 2009-10, the Company has along with Department of Factories and Boilers, Government of

Kerala, formed a society under the Travancore Literary, Scientific and Charitable Societies Act 1955 with the objective of conducting courses relating to welding technologies with a grant of ' 1 Crore from the Government of Kerala, under the name Kerala institute of Welding and Research. The contribution from the Company is only provision of its existing facilities of Training School. The accounts of the society are not consolidated as society is formed with an objective of not obtaining any economic benefits from its activities and is considered immaterial to the Company's activity.

2) Key Management Personnel

1 Shri Kishor Rungta, Chairman and Managing Director (from 02.02.2019)

2 Shri.Anupam Misra, Director (Marketing) (from 14.07.2020)

3 Shri.S.Sakthimani, Director (Finance) & Chief Financial Officer (From 08.03.2021)

4 Shri.Kesavan Nampoori A.S, Director (Technical) (From 22.03.2021 to 30.09.2022)

5 Dr.Jayachandran.K, Director (Technical) (From 03.03.2023)

6 Shri K V Balakrishnan Nair, Company Secretary & Executive Director (Finance) up to 31.05.2022

7 Smt.Susan Abraham, Company Secretary from 15.07.2022 ** On payment basis

The whole time Directors have been allowed the use of company car and for private journey upto a ceiling of 9000 kms. per year, on payment as prescribed by the Government.

Gratuity and leave encashment benefit accrued to the Directors have not been disclosed as the contribution payable has been provided in the accounts and separate figures are not ascertainable.

1 "77 _

1. FACT-RCF BUILDING PRODUCTS LTD.:- A Joint venture Company with Rashtriya Chemicals and Fertilizers Limited (RCF) for manufacture of rapid building materials from Gypsum at Kochi.

2. Kerala Enviro Infrastructure Ltd. (KEIL) is a public limited company formed as Special Purpose Vehicle and promoted by the Kerala State Industrial Development Corporation (KSIDC) in association with various industries in the State for establishing Common Treatment, Storage and Disposal Facility (CTSDF) for solid hazardous industrial waste in the State of Kerala.

3. The percentage of Company's shareholding in M/s.Kerala Enviro Infrastructure Limited as on 31.03.2022 was 21.75%. The Company's percentage of share holding in the equity shares of Kerala Enviro Infrastructure Ltd as on 31.03.2023 has reduced to 15.91 %, on account of additional investment by other share holders.. As the investment as on 31.03.2023, is less than 20%, the investment has been re-classified as 'Other Investments'.

* Owing to the company's share of losses exceeding its interest in the joint venture recognising the share of loss stands discontinued. Accordingly company has not recognized share of loss of ' 395.25 lakh for the year (Previous Year ' 470.50 lakh) and ' 10844.68 lakhs cumulatively upto the year ended 31.03.2023 (' 10449.43 lakh cumulatively upto the year ended 31.03.2022).

46. EMPLOYEE BENEFITS

General Description of Defined Contribution Plan

Contributory Superannuation Scheme-The scheme is aimed to provide superannuation benefits to the employees. Every year company contributes ' 100 to the fund.

General Description of Defined Benefit Plan A Leave Encashment and Gratuity

The company operates gratuity plan where in every employee is entitled to the benefit equivalent to fifteen days salary last drawn for each completed year of service. The same is payable on death , separation from service or retirement , whichever is earlier. The benefit vests after five years of continuous service. The company has been accounting for provision on account of leave encashment on retirement based on actuarial valuation carried out as at the balance sheet date.

B Provident Fund

The Provident Fund contributions are made to Trusts administered by the company. The interest rate payable to the members of the Trust shall not be lower than statutory rate of interest declared by the Central Government under the Employees Provident Funds and Miscellaneous Provisions Act 1952.

During the year an amount of ' 1908.42 lakh ( Previous Year ' 1705.21 lakh) has been charged to Statement of Profit & Loss towards contribution by the Company. In terms of the Ind AS 19 , the Provident Fund Trust set up by the company is treated as Defined Benefit Plan since the company has to meet the shortfall in the fund assets , if any.

During the year, vide, G.O(Rt.)No. 354/2023/LBR dated 23.03.2023 Government of Kerala (appropriate authority as per Para 27A of Provident Fund and Miscellaneous Provisions Act, 1952) withdrew exemption granted for the Company in respect of The FACT Employees Provident Fund, Udyogamandal Division on account of three years continuous loss incurred by the company . Company has challenged the same and filed a writ petition before the Hon' High Court of Kerala and the notification has been stayed by the Honorable High Court. The matter is still pending.

The Gratuity scheme is a final salary defined benefit plan that provides for a lumpsum payment at the time of separation; based on scheme rules the benefits are calculated on the basis of last drawn salary and the period of service at the time of separation and paid as lumpsum. There is a vesting period of 5 years. The design entiles the following risks that affect the liabilities and cash flows

Interest rates risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall the defined benefit obligation will tend to increase. Thus the plan exposes the Company to the risk of fall in interest rates. Some times the fall can be permanent due to a paradigm shift in interest rate scenarios because of economic or fiscal reasons. 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). Even for funded schemes a paradigm downward shift in bond yields may affect the reinvestment yields and may increase ultimate costs.

Salary inflation risk:

The present value of the defined benefit plan is calculated with the assumption of salary escalation rate(SER) which is applied to find the salary of plan participants in future at the time of separation Higher than expected increases in salary will increase the defined benefit obligation and will have an exponential effect.

Retirement age:

It should be noted that in case of employees above retirement age for the purpose of valuation it is assumed they will retire immediately & benefit is considered up to actual retirement age.

Demographic risks:

Demographic assumptions are required to assess the timing and probability of a payment taking place. This is the risk of volatility of results due to unexpected nature of decrements that include mortality attrition

disability and retirement. The effects of this decrement on the DBO depend upon the combination salary increase discount rate and vesting criteria and therefore not very straight forward. It is important not to overstate withdrawal rate because the cost of retirement benefit of a short serving employees will be less compared to long service employees.

Asset Liability Mismatch:

This will come into play unless the funds are invested with a term of the assets replicating the term of the liability.

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 than 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 than 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 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.

Liquidity Risk

This is the risk that the Company is not able to meet the short-term gratuity pay outs. This may arise due to non availability of enough cash / cash equivalent to meet the liabilities or holding of liquid assets not being sold in time..

Employees with high salaries and long durations of service 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.

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.

Legislative risk/Regulatory 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. The new labour code is a case in point. And the same will have to be recognized immediately in the year when any such amendment is effective.

(ii) Sensitivity Analysis

How the DBO would have been affected by 100 basis points changes in the actuarial assumptions namely discount rates salary growth Attrition & Mortality is shown below

P.U.C method has been used. If an employee's service in later years will lead to a materially higher level of benefit than in earlier years these benefits are attributed on a straight-line basis. The limitations are that in assessing the change other parameters are kept constant. As some of the assumptions may be correlated it is unlikely that changes in assumptions will occur in isolation of one another.

There is no change from the previous period in the methods and assumptions used in the preparation of above analysis, except that the base rates have changed

(iii) Asset Liability Matching Strategies GRATUITY-EMPLOYEES :

Insurer Administered Fund

The company has funded the liability with the insurance company. The entire investible assets are managed by the fund managers of the Insurance company and the Asset Values as informed by the Insurance

Company has been taken for the valuation purpose. 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 a increase in liability without corresponding increase in the asset). .

Thus the Company is exposed to movement in interest rate (in particular the significant fall in interest Rates which should result in a increase in liability without corresponding increase in the asset).

GRATUITY-CASUAL LABOUR (CLR)

Pay As You Go Method

The company is only making book provisions for the entire Gratuity Liability on the valuation and follows a 'pay as you go' system to meet the liabilities as and when they fall due. Therefore the scheme is fully unfunded, and no assets are maintained by the company and asset values are taken as zero; there is liquidity risk in that they may run out of cash.

(iv) Other disclosures GRATUITY-EMPLOYEES :

The company has started funding the liability through the medium of an insurance company and regular assessment is made by the Company of the increase in liability and contributions are being made to maintain the fund and is subject to the credit risk of the insurance company and asset liability mismatch risk of the investments .

The leave scheme is a final salary defined benefit plan, that provides for a lumpsum payment at the time of separation; based on scheme rules the benefits are calculated on the basis of last drawn salary and the leave count at the time of separation and paid as lumpsum.

The design entiles the following risks that affect the liabilities and cash flows,

Interest rates risk

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risks:

This is the risk of volatility of results due to unexpected nature of decrements that include mortality attrition, disability and retirement. The effects of this decrement on the DBO depend upon the combination salary increase, discount rate, and vesting criteria and therefore not very straight forward. It is important not to overstate withdrawal rate because the cost of retirement benefit of a short serving employees will be less

P.U.C method has been used for sensitivity analysis. If an employee's service in later years will lead to a materially higher level of benefit than in earlier years, these benefits are attributed on a straight-line basis. The limitations are that in assessing the change other parameters are kept constant. As some of the assumptions may be correlated, it is unlikely that changes in assumptions will occur in isolation of one another.

There is no change from the previous period in the methods and assumptions used in the preparation of above analysis, except that the base rates have changed (iii) Actuarial measurements as on March 31,2023

The company has not started funding the Leave liability & has been following pay as you go method for settlement of the liability

1RA -

48.1. Sales Tax/ Value Added Tax / Entry Tax includes Nil (previous year '16614.87 lakh- including interest up to 31.03.2022) towards differential tax demand in respect of the year 2011-12 on the disputed turnover, consequent to withdrawal of the demand notice during the year, by the Assessing Authority in the rectification of the assessment order.

48.2. The contract for the barge transportation of Ammonia awarded to a private company has been cancelled void ab initio during 2004-05 by the Company. The Contractor claimed '178489.75 lakh including interest till 31.03.2013 before the arbitrator .The arbitrator has passed an award during the year 2013-14 in favour of the contractor for 17308.04 lakh including interest as on 31.12.2013 .As per the award, the mobilisation advance paid by the Company to the contractor along with interest of

2798.29 lakh is to be adjusted against the said award. The Company has not accepted the award on legal and factual grounds and has challenged the award before the Hon' District Court , Ernakulam which has since stayed the award. During the year 2019-20, as per the directive of Hon' District Court, Ernakulam the Company has provided 80.50 acres of land as security for the award. Accordingly, the award amount along with interest up to 31.03.2023, amounting to '26716.88 lakh without considering the adjustment of mobilisation advance and interest allowed under the arbitral award is not considered as a liability and included under Contingent Liability. The case is transferred to Commercial Court.

48.3. A plan loan of '100000.00 lakh bearing interest @13.50% per annum was released by the Government of India (GOI) on 29th March 2016 to maintain the operations of the Company. As per the order of Government of India, 100000.00 lakh along with the earlier loan and interest outstanding has been converted into a single loan carrying interest @ 13.50% per annum with one year moratorium. As per the trems of sanction , Government reserves right to enhance the rate of interest to 16.25% in case of default in repayment. As no communication in this regard has been received from the Government, as on date, '4895.52 lakhs (previous year- Nil) being additional interest for the year 2022-23 has been shown as contingent liability (refer Note 22.2)

48.4. '392.82 lakhs (Previous year-Nil) is claimed by a transport contractor in an arbitration petition filed by them in response to '298.53 lakhs withheld from the contractor bills and initiation to invoke bank guarantee of '151.22 lakhs towards compensation for non-delivery of goods. Company filed a counter claim of '224.03 lakhs (including interest). '94.80 lakhs is included in the contingnet liability towards the claim.

48.5 Contingent Liability as on 31.03.2023, includes '91.56 Lakh being the amount payable as per the Arbitration award , to a customer whose contract for sale of bulk gypsum was terminated by the Company during the year 2016-17. In response to the Execution petition filed by the party, the Hon'ble High Court issued an interim injunction attaching an amount of '175.64 lakhs in the Company's bank account. Challenging the same, we have filed objection petition which has been admitted by the Hon Court and interim stay has been granted.

48.6 As per the Presidential directive and the agreement entered into between the Company and the trade unions for implementation of the 2017 wage revision, the company is not liable to pay arrears of salary and wages for the period from 01.01.2017 to 31.03.2022, in respect of managerial and nonmanagerial employees. Certain retired employees of FACT have filed Writ Petitions before the Hon. High Court of Kerala praying for a direction to the company to disburse arrears of pay revision and other consequential benefits for the period from 01.01.2017 to the respective retirement dates of the petitioners. Since a verdict/decision on payment of arrears relating is not taken, the amount of liability cannot be ascertained at this stage.

2798.29 lakh is to be adjusted against the said award. The Company has not accepted the award on legal and factual grounds and has challenged the award before the Hon' District Court , Ernakulam which has since stayed the award. During the year 2019-20, as per the directive of Hon' District Court, Ernakulam the Company has provided 80.50 acres of land as security for the award. Accordingly, the award amount along with interest up to 31.03.2023, amounting to '26716.88 lakh without considering the adjustment of mobilisation advance and interest allowed under the arbitral award is not considered as a liability and included under Contingent Liability. The case is transferred to Commercial Court.

48.3. A plan loan of '100000.00 lakh bearing interest @13.50% per annum was released by the Government of India (GOI) on 29th March 2016 to maintain the operations of the Company. As per the order of Government of India, 100000.00 lakh along with the earlier loan and interest outstanding has been converted into a single loan carrying interest @ 13.50% per annum with one year moratorium. As per the trems of sanction , Government reserves right to enhance the rate of interest to 16.25% in case of default in repayment. As no communication in this regard has been received from the Government, as on date, '4895.52 lakhs (previous year- Nil) being additional interest for the year 2022-23 has been shown as contingent liability (refer Note 22.2)

48.4. '392.82 lakhs (Previous year-Nil) is claimed by a transport contractor in an arbitration petition filed by them in response to '298.53 lakhs withheld from the contractor bills and initiation to invoke bank guarantee of '151.22 lakhs towards compensation for non-delivery of goods. Company filed a counter claim of '224.03 lakhs (including interest). '94.80 lakhs is included in the contingnet liability towards the claim.

48.5 Contingent Liability as on 31.03.2023, includes '91.56 Lakh being the amount payable as per the Arbitration award , to a customer whose contract for sale of bulk gypsum was terminated by the Company during the year 2016-17. In response to the Execution petition filed by the party, the Hon'ble High Court issued an interim injunction attaching an amount of '175.64 lakhs in the Company's bank account. Challenging the same, we have filed objection petition which has been admitted by the Hon Court and interim stay has been granted.

48.6 As per the Presidential directive and the agreement entered into between the Company and the trade unions for implementation of the 2017 wage revision, the company is not liable to pay arrears of salary and wages for the period from 01.01.2017 to 31.03.2022, in respect of managerial and nonmanagerial employees. Certain retired employees of FACT have filed Writ Petitions before the Hon. High Court of Kerala praying for a direction to the company to disburse arrears of pay revision and other consequential benefits for the period from 01.01.2017 to the respective retirement dates of the petitioners. Since a verdict/decision on payment of arrears relating is not taken, the amount of liability cannot be ascertained at this stage.

1. Contingent assets in respect of 'Suppliers and Contractors' includes 5385.59 lakhs (Previous year -Nil) for the year 2022-23 receivable from a contractor on the interest bearing mobilisation advance still retained by the party(refer Note 5.1, 13.2, 29.1). It also includes reduction in regasification charges 2472.98 lakhs receivable from oil companies in respect of Re-gassified Liquified Natural Gas during the year 2019-20. This disputed matter is presently pending before Administrative Mechanism for Resolution of CPSEs Disputes ( AMRCD)

51. Construction Contracts

Income under services for own units reckoned by the Engineering and Consultancy Division (FEDO) and the Fabrication Division (FEW) is accounted by respective units under revenue expenditure '730.16 lakh (Previous year '784.02 lakh), and capital expenditure '2267.82 lakh (Previous year '905.40 lakh)

In the case of work being carried out by FACT Engineering and Design Organisation (FEDO), for National Institute of Technology ( NIT), Nagaland, as an executing agency, on a cost plus basis, as a deposit work , FEDO is eligible for certain percentage of fees of total project cost . As per technical evaluation ,52.46 %(previous year 52.46%) of work related to consultancy services by FEDO to NIT, has been completed as on 31.3.2023 and pro-rata credit of '888.27 lakh ( previous year 862.73 lakh) has been taken, after considering '276.44 lakh towards work in progress ( previous year 264.27 lakh). The value of construction work billed and certified during the year 2022-23 is taken as Nil, (previous year 234.35 lakh) and equivalent amount has been considered for direct charges on contract.

52. Disclosure in respect of changes in accounting policies, Changes in Accounting Estimates and Errors.

During the year certain errors or omission were identified. Accordingly, previous year financial statements are restated, as per the provisions of Ind AS 8. The nature of restatements and the impact in the previous financial statements and at the beginning of the earliest prior period is as follows. Regrouping of figures are not included in the statement.

Restatements at the beginning of the earliest prior period

1. During the year 2019-20, company had sold 481.79 acres of Land, as approved by Union Cabinet, Government of India ' 1 Crore per acre for 150 Acres (in lieu of free hold right accorded by the Government of Kerala over 143.22 acres of lease hold land) and remaining 331.79 acres ' 2.4758 Crore per acre as assessed by the District Collector. On receipt of valid order from revenue department during the year 202223 , the fair value of the 143.22 acres of the land converted ' 47956 Lakhs , has been accounted as income and equivalent value as land, as restatement of the balance as on 01.04.2021.

Restatements of previous year figures

1. ' 652.80 lakh received from Kochi Salem Pipeline Private Limited (KSPPL) towards compensation for Right of Use of land at Cochin Division for laying pipeline, fully accounted as income during 2021-22, has been amortised with effect from 27.01.2022, over the expected agreement tenure of 10 years, as the execution of final agreement is pending. Accordingly '641.36 lakhs accounted as income during 202122 has been restated as 'Advance rent received' as on 31.03.2022.

2. An item of 'Property Plant & Equipment with cost of acquisition ' 87.45 lakhs which was available for use during 2021-22, has been capitalised and corresponding depreciation of '4.55 lakhs has been charged by way of restatement of 2021-22 figures

3. Rectification of accounting of 'work in progress' with respect to in-house capital projects. Consequently, the capital work in progress is reduced by '63.31 lakhs, 'Other Accrued income' is increased by '18.50 lakhs and 'other expenses' increased by ' 44.81 lakhs

55. The Company has earned profit continuously from the financial year 2018-19 and consequently the net worth of the Company has improved considerably. The net worth of the company is positive as on 31.03.2023. The Company has achieved excellent production, marketing and financial performance during the last four years and the same trend is expected in the financial year 2023-24 also. Financial restructuring packages submitted by the company requesting approval for waiver of Govt of India interest and restructuring Govt of India loan is under the consideration of the Government of India and the Company expects a favourable decision on the proposal. . Accordingly the accounts of the company are prepared on going concern basis

56. The standalone financial statements were authorized for issue in accordance with a resolution passed by the Board of Directors on 05.05.2023

57. The financial statements as approved by the Board of Directors are subject to audit by Comptroller and Auditor General of India and final approval by the Shareholders.

58. The figures of the previous year have been re-arranged and regrouped wherever necessary and / or practicable to make them comparable with those of the current year.

59. Events occurring after the Balance sheet date

Board of Directors have recommended a final dividend of 1.00 per equity share of 10/- each (Previous Year- Nil) i.e. 10.00 % on paid up equity share capital of the Company for the financial year 2022-23 which is subject to approval of Shareholders of the Company

1

The loan from Government of India along with interest is repayable in three or more equated installments within a period of 5 years ending by 2022.Company has submitted a Financial Restructuring proposal to Department of Fertilizers (DoF), Government of India (GoI), seeking approval for the waiver of interest on Government of India loan, conversion of loan amounting to ' 28273.00 lakhs into equity and conversion of loan amounting to ' 100000.00 lakhs as interest free loan, repayable in yearly installments. The financial restructuring proposal submitted by the Company is under the consideration of the Department of Fertilizers, Government of India. Pending approval by the Government of India, the loan taken from GoI and interest due thereon are accounted and disclosed as per the loan agreement dated March 3, 2016 . The management expects restructuring of the loan, whereby the Government shall grant sufficient time for the repayment of the loan and interest due thereon. Accordingly, the Company can manage the immediate liquidity requirement.

2

As per the decision of Government of India, during the year 2021-22 Company has framed a scheme for disbursement of wage revision arrears relating to the period from 01.01.1997 to 30.06.2001, in a phased manner, based on the direction of the Honourable Supreme Court of India. Dues to employees include Nil (previous year ' 2491.45 lakhs) towards 1997 arrears payable after one year (refer Note- 25.1 & 36.1)

3

The loan from Government of India along with interest is repayable in three or more equated installments within a period of 5 years ending by 2022.Company has submitted a Financial Restructuring proposal to Department of Fertilizers (DoF), Government of India (GoI), seeking approval for the waiver of interest on Government of India loan, conversion of loan amounting to ' 28273.00 lakhs into equity and conversion of loan amounting to ' 100000.00 lakhs as interest free loan, repayable in yearly installments. The financial restructuring proposal submitted by the Company is under the consideration of the Department of Fertilizers, Government of India. Pending approval by the Government of India, the loan taken from GoI and interest due thereon are accounted and disclosed as per the loan agreement dated March 3, 2016 . The management expects restructuring of the loan, whereby the Government shall grant sufficient time for the repayment of the loan and interest due thereon. Accordingly, the Company can manage the immediate liquidity requirement.