3. Property, Plant and Equipment, Right of use assets, other Intangible Assets, Goodwill and Capital Work-in-Progress (contd.)

(i) As a part of concession agreement for development of port and related infrastructure at Mundra, the Company has been allotted land on lease basis by Gujarat Maritime Board (GMB). The Company has recorded rights in the GMB Land at present value of future annual lease payments in the books and classified the

same as Right-of-Use assets.

The recoverable amount of the CGUs are determined from value-in-use calculation. The key assumptions for the value-in-use calculations are those regarding the discount rate, growth rates and expected changes to direct costs during the year. Management estimates discount rate using pre-tax rates that reflect current market assessments of the time value of money. The growth rate are based on management's forecasts . Changes in selling prices and direct costs are based on past practices and expectations of future changes in the market. The Company prepares its forecasts based on the most recent financial budget approved by management with projected revenue growth rates. The management believes that any reasonable possible change in any of these assumptions would not cause the carrying amount to exceed its recoverable amount. Goodwill is attributable to future growth of business out of synergies.

b) (i) Adani Vizag Coal Terminal Private Limited ("AVCTPL'), a Wholly Owned Subsidiary of the Company is engaged in Port services under concession agreement with Visakhapatnam Port Trust ("VPT"). During the previous year, AVCTPL and VPT had initiated termination on mutual consent as per right under the concession agreement citing force majeure events, which went for arbitration. Both the parties have filed the claim with arbitrators and the final outcome is yet to be decided.

During previous year ended on March 31, 2022, the arbitration tribunal, in its interim order, observed that terminal remaining idle leads to its deterioration and fails to generate any revenue. Hence, terminal should be put to operation without any delay and has directed VPT to release an ad-hoc interim payment to AVCTPL. Based on such directions, ad-hoc payment of H155 Crore has been received against handing over the possession, management and operational control of the terminal, leaving open all rights and contentions of both parties for examination at a later stage. Company has reassessed the carrying values of its loan and equity investment in AVCTPL in light of the aforesaid developments and has

continued to carry these balances at values net of impairment provisions amounting to H297.38 crore

(H228.85 crore net of tax).

(ii) Adani Kandla Bulk Terminal Private Limited ("AKBTPL'), a wholly owned subsidiary of the Company, is engaged in providing port services near Tuna outside Kandla creek at Kandla Port under concession from Deendayal Port Trust.

During the previous year, the management of the Company had carried out detailed cash flow projections over the period of the Concession agreement for determining the recoverable value of its Investments in accordance with Ind AS 36 Impairment of Assets. On a careful evaluation, the management of the Company had concluded its assessment and provision for impairment loss amounting to H491.23 crore (perpetual securities amounts to H250 crore and loans given amounts to H241.23 crore including interest accrued H101.23 crore as at March 31, 2022) has been recorded as on March 31, 2022 towards the Company's investments and the same has been presented as an exceptional item. During the current year, the Company has written off the said balances in absence of possibility of recovery.

(iii) The carrying amounts of long-term investments in equity shares of Adani Murmugao Port Terminal Private Limited ("AMPTPL') amounts to H115.89 crore as at March 31, 2023 and non-current loans given to AMPTPL amounts to H455.98 crore (including interest accrued H29.61 crore) as at March 31, 2023. The Company has been providing financial support to AMPTPL to meet its financial obligations as and when required in the form of loans, which are recoverable at the end of the concession period. AMPTPL was undergoing an arbitration with Murmugao Port Trust ("MPT") for revenue share on deemed storage charges and loss of return of capital to AMPTPL due to failure of MPT to fulfil obligations as per concession agreement for a period till financial year 2018-19. Post financial year 2018-19, AMPTPL has received relief in terms of rationalized tariff on storage charges up to March 2021 from authorities and had filed application for similar relief for subsequent year and awaiting approval. During the current year, the arbitration had been concluded which affirmed partial claim of AMPTPL for the loss of return on capital and also upheld revenue share on deemed storage for three-year period. In earlier years, AMPTPL had made provision of H134.61 Crore for the revenue share on deemed storage charges against which H40.50 Crore would have been payable as per the arbitration order. Both the parties have challenged the arbitration order in commercial court in the month of August 2022. Considering the matter being sub-judice at this stage, no adjustments based on arbitration order has been considered in the current financial statements.

The Company has determined the recoverable amounts of its investments and loans in AMPTPL as at March 31,2023 by considering a discounted cash flow model. Such determination is based on significant estimates & judgements made by the management as regards the benefits of the rationalization of revenue share on storage income, cargo traffic, port tariffs, inflation, discount rates which have been considered over the remaining concession period and are considered reasonable by the Management. On a careful evaluation of the aforesaid factors, the Company's management has concluded that no provision for impairment in respect of such investments and loans is considered necessary at this stage.

c) During the year 2016-17, the Company had accounted for purchase of 3,12,13,000 numbers of equity shares

of Adani Kandla Bulk Terminal Private Limited at consideration of H31.21 crore. The equity shares have been

purchased from the Adani Enterprises Limited, a group company whereby this entity has become a wholly

owned subsidiary. As per the management, the transfer has been recorded based on Irrevocable Letter of

Affirmation dated March 31, 2017 from the seller and acceptance by the Company although legal transfer of equity share of Adani Kandla Bulk Terminal Private Limited is still in process at year end.

f) Investment in Perpetual Non-Cumulative Non-convertible Debenture / Perpetual Debt (carrying interest rate of 7.50%) is redeemable / payable at issuer's option, can be deferred indefinitely and Interest is payable at the discretion of issuer, Accordingly, it is considered as equity instrument,

g) Aggregate amount of unquoted investments as at March 31, 2023 H44,810.74 crore (previous year H33,747.83

crore),

h) During the previous year, Adani Gangavaram Port Limited, Adani International Ports Holdings Pte. Limited and HDC Bulk Terminal Limited have been incorporated as a wholly owned subsidiary of the Company on July 14, 2021, June 16, 2021 and March 07, 2022 respectively.

i) On November 10, 2022, the Company completed acquisition of Adani Bulk Terminals (Mundra) Limited from Adani Agri Logistics limited and Adani Container Manufacturing Limited from Adani Logistic Services

Private Limited

j) Adani Aviation Fuels Limited and Tajpur Sagar Port Limited have been incorporated as a wholly owned subsidiary of the Company on September 29, 2022 and October 21, 2022.

Mediterranean International Ports A.D.G.D Limited ("MIPAL') has been incorporated as subsidiary of the Company on November 13, 2022. MIPAL has acquired 100% stake of Haifa Port Company on January 10, 2023 from the Government of Israel which operates Haifa Port in Israel.

k) Interest is payable at the discretion of issuer and conversion ratio is fixed to fixed at the maturity and same

is considered as equity instrument,

l) On March 30, 2022, Subsidiary of the company, Adani Logistics Limited has acquired 37.95% equity shares of Mundra Solar Technopark Private Limited ("MSTPL') from Adani Green Technology Limited. Subsequently MSTPL has became subsidiary of the Company by virtue of management control,

m) Ahmedabad Bench of National Company Law Tribunal ("NCLT") through its order dated October 11, 2022 have approved the scheme filed by Mundra LPG Terminal Private Limited ("MLTPL') (in which the Company was investor) to reduce its share capital from H110.05 crore to H0.10 crore, consequent to which the Company

has obtained equity stake of 48,97%,

Since the scheme is effective from filling of resolution dated February 24, 2022, the Company has accounted MLTPL as an investment in associate from that date. Accordingly previous year is restated by considering as

associate entity from other entity.

Consequent to the above scheme and further investment in equity instrument by the subsidiary Company in April 2022, MLTPL became step down subsidiary of the Company and has been accounted accordingly.

n) On March 31, 2023, The National Company Law Tribunal ("NCLT") has passed the order approving the Company ("APSEZ") to be successful resolution applicant for Karaikal Port Private Limited ("KPPL') under Corporate Insolvency Resolution Process ("CIRP") with equity of Hi crore and debt of H1,485 crore.

As at March 31, 2023 in absence of dissolution of Implementation & Monitoring Committee as defined in NCLT order and pending formulation of new board of directors by the acquirer, the Company was not in a position to exercise control over the KPPL on reporting date. Subsequent to the reporting date, on April 04, 2023, the Board as mentioned above has been formulated by the Company and the Company has exercised the control over KPPL effective from that date

o) The Company has completed the acquisition of Joint Venture entity, Oiltanking India GmbH's 49.38% equity stake in Indian Oiltanking Limited ("IOTL') and Oiltanking GmbH's 10% equity stake in IOT Utkal Energy Services Limited, a subsidiary of IOTL for the consideration of H1,203.84 crore.

p) In earlier year, AKPL had paid amount towards non-compete fees for acquiring geographical exclusivity for the term of 5 years. As per the provision of Accounting Standards, the Company has reassessed the accounting treatment being transaction linked with acquisition of the remaining stake from NCI for one of the subsidiary. Accordingly, unamortised amount of H226.46 crore has been considered as deemed

investment and adjusted to retained earning.

b) Generally, as per credit terms trade receivable are collectable within 30-60 days although the Company provide extended credit period with interest between 7.50% to 9% considering business and commercial arrangements with the customers including with the related parties.

c) The Carrying amounts of the trade receivables include receivables amounting to H257.05 crore (previous year H208.24 crore) which are subject to a bills discounting arrangement. Under this arrangement, the Company has transferred the relevant receivables to the bank / financial institution in exchange of cash and is prevented from selling or pledging the receivables. The Cost of bill discounting is to the customer's account as per the arrangement. However, the Company has retained late payment and credit risk. The Company therefore continues to recognise the transferred assets in their entirety in balance sheet. The amount repayable under the bills discounting arrangement is presented as unsecured borrowing in note 18.

(i) Loans/ Inter Corporate deposits given from time to time are based on terms approved by the Finance Committee of the Board of Directors of the Company as per the Treasury Policy, as permitted by the Articles of Association, and their repayment along with interest are guaranteed by unconditional and irrevocable Letter of Indemnity and Undertaking by a related party. (Refer note 3 to the Statement of Cashflows, 34.3

(b) of Credit Risk and note 32)

(a) Capital advances includes H74.98 crore (previous year H139.93 crore) paid to various private parties and government authorities towards purchase of land.

(b) Contract assets are the right to receive consideration in exchange for services transferred to the customer. Contract assets are initially recognised for revenue earned from port operation services as receipt of consideration is conditional on successful completion of services. Upon completion of services and acceptance by the customer, the amounts recognised as contract assets are reclassified to financial assets.

(c) Capital advance is net of allowance for doubtful advance of H10.59 crore (previous year H10.59 crore).

i) Terms/rights attached to equity shares

- The Company has only one class of equity share having par value of H2 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian

Rupees.

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

ii) On April 19, 2021, the Company has allotted 1,00,00,000 equity shares having face value of H2 each on preferential basis to Windy Lakeside Investment Limited at an issue price of H800 per share (including

premium of H798 per share).

For the period of five years immediately preceding the date as at which the Balance Sheet is prepared:

iii) Aggregate number of 11,83,87,184 (upto March 31, 2022: 7,06,21,469) equity shares of H2 each have been allotted, Pursuant to Composite Scheme of Arrangement, (refer note 42).

i) Terms of Non-Cumulative Redeemable Preference shares

The Company has outstanding 25,01,824 (previous year 25,01,824) 0.01 % Non-Cumulative Redeemable Preference Shares ('NCRPS') of H10 each issued at a premium of H990 per share. Each holder of preference shares has a right to vote only on resolutions placed before the Company which directly affects the right attached to preference share holders. These shares are redeemable at an aggregate premium of H247.68 crore (previous year H247.68 crore) (equivalent to H990.00 per share).

In the event of liquidation of the Company, the holder of NCRPS (before redemption) will have priority over equity shares in the payment of dividend and repayment of capital. The preference shares carry fixed dividend which is non-discretionary.

The Preference Shares issued by the Company are classified as Financial Liabilities. These preference shares are separated into liability and equity components based on the terms of the contract. Interest on liability component is recognised as interest expense using the effective interest method.

The equity component of redeemable preference shares includes the securities premium amount received on issue of preference shares and the preference share capital, redemption premium reserve being created in compliance of the Companies Act, 2013.

a) Debentures include Secured Non-Convertible Redeemable Debentures amounting to H2,586.38 crore (previous year H2,746.80 crore) which are secured by first rank Pari-passu charge on all the immovable and movable project assets of Multi-purpose Terminal, Terminal-II and Container Terminal -II located at Mundra Port.

b) Debentures include Secured Non-Convertible Redeemable Debentures aggregating to H1,851.38 crore (previous year H1,849.70 crore) which are secured by first rank pari-passu charge on all the movable and immovable assets pertaining to coal terminal project assets at Wandh, Mundra Port.

c) Debentures include Secured Non-Convertible Redeemable Debentures aggregating to H1,300.00 crore (previous year H1,300.00 crore) which are secured by first rank pari-passu charge on all the immovable and movable project assets of Multi-purpose Terminal, Terminal-II and Container Terminal -II located at Mundra Port. (Previous year - specified assets of certain subsidiary companies and all the immovable and movable project assets of Multi-purpose Terminal, Terminal-II and Container Terminal -II located at Mundra Port).

d) Debentures include Secured Non-Convertible Redeemable Debentures aggregating to H1,591.45 crore (previous year H1,589.45 crore) are secured by first rank pari-passu charge on the specified assets of one of the subsidiary company and immovable and movable project assets of Multi-purpose Terminal, Terminal-II and Container Terminal -II located at Mundra Port. (Previous year - secured by first pari-passu charge on

specified assets of one of the subsidiary company).

e) Debentures include Secured Non-Convertible Redeemable Debentures aggregating to H991.14 crore (previous year H985.90 crore) are secured by first rank Pari-passu charge on specified assets of one of the

subsidiary company,

f) Foreign currency loan aggregating to H Nil (previous year H18.60 crore) carries interest @ 6 months EURIBOR plus basis point 95. The loan is secured by exclusive charge on the Dredgers procured under the facility. The same has been repaid during the current year.

g) Rupee term loan amounting to H Nil (previous year H410.81 crore) carrying interest @ Repo Rate plus spread of 1.35%. The loan is repayable in 8 half yearly structured instalment commencing from December 30, 2020. The loan is secured by first ranking pari-passu charge on the movable and immovable assets of Multipurpose Terminal, Terminal-II and Container Terminal -II project assets of the Company located at Mundra Port. Considering the terms of the loan, same has been classified under current borrowings.

h) Unsecured Loan

(i) 10 years Foreign Currency Bond of USD 500 million equivalent to H4,088.21 crore (previous year H3,759.40 crore) carries interest rate at 4.00% p.a. with bullet repayment in the year 2027.

(ii) 10 years Foreign Currency Bond of USD 750 million equivalent to H6,126.65 crore (previous year H5,640.68 crore) carries interest rate at 4.375% p.a. with bullet repayment in the year 2029.

(iii) 5 years Foreign Currency Bond of USD 650 million equivalent to H5,335.15 crore (previous year H4,908.91 crore) carries interest rate at 3.375% p.a. with bullet repayment in the year 2024.

(iv) 7 years Foreign Currency Bond of USD 750 million equivalent to H6,138.19 crore (previous year H5,653.58 crore) carries interest rate at 4.20% p.a. with bullet repayment in the year 2027.

(v) 10 years Foreign Currency Bond of USD 500 million equivalent to H4,078 crore (previous year H3,755.69 crore) carries interest rate at 3.10% p.a. with bullet repayment in the year 2031.

(vi) 10.50 years Foreign Currency Bond of USD 300 million equivalent to H2,432.95 crore (previous year H2,238.96 crore) carries interest rate at 3.828% p.a. with bullet repayment in the year 2032

(vii) 20 years Foreign Currency Bond of USD 450 million equivalent to H3,645.68 crore (previous year H3,356.91 crore ) carries interest rate at 5% p.a. with bullet repayment in the year 2041.

(viii) Trade credit facilities of H308.24 crore (previous year H181.90 crore). The same is repayable in next year unless maturity date of the same is extended/rolled over.

(ix) Inter Corporate deposits from a subsidiaries aggregating to H5,060.98 crore (previous year H2,371.52

crore) carries interest rate at 7.50%.

The loan is secured by first rank Pari-passu charge on all the immovable and movable project assets of Multipurpose Terminal, Terminal-II and Container Terminal -II located at Mundra Port. Considering the terms of the loan, same has been classified under current borrowings.

c) Commercial Paper (CP) aggregating H Nil (previous year H1,782.36 crore ) carried interest rate of 4.25% p.a. Same has been repaid during the current year.

d) Packing Credit rupee Loan aggregating to H Nil (previous year H400 crore) linked to 3 month Treasury Bill. Same has been repaid during the Current year.

e) Packing Credit rupee Loan aggregating to H Nil (previous year H500 crore) carries interest rate of 4.10% p.a. Same has been repaid during the current year.

f) Packing Credit rupee Loan aggregating to H700 crore (previous year H Nil) carries interest rate of 7.85% p.a.

g) Inter Company deposit from a subsidiary aggregating to H568.74 crore (previous year H Nil) carries interest rate ranging from 7.50% to 7.85%.

h) Factored receivables of H257.05 crore (previous year H208.24 crore) have recourse to the Company and interest liability on amount of bill discounted is borne by the customer. The maturity period of the transfer

is 1 to 12 months period (refer note 5).

b) The Company has given various assets on finance lease to various parties. The lease agreements entered are non-cancellable. There is no contingent rent, no sub-leases and no restrictions imposed by the lease arrangements. Land leases include a clause to enable upward revision of the rental charge upto 3 years upto 20%. The company has also received one-time income of upfront premium ranging from H600 to H4000 per Sq. mtr for use of common infrastructure by the parties. Such one-time income of upfront premium is nonrefundable. Income of H156.35 crore (previous year H145.98 crore) including upfront premium of H128.63 crore (previous year H108.78 crore) accrued under such lease have been booked as income in the statement of profit and loss.

c) Land given under operating lease:

The Company has given certain land portions on operating lease. Most of the leases are renewable for further period on mutually agreeable terms.

b) Details of Expenditure on Corporate Social Responsibilities

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act.

As per notification issued by Ministry of Corporate Affairs dated January 22, 2021, where a company spends an amount in excess of requirement provided under sub-section (5) of section 135, such excess amount may be set off against the requirement to spend under sub-section (5) of section 135 up to immediate succeeding three financial years.

Each year, the management reviews the level of funding in the gratuity fund. Such review includes the asset - liability matching strategy. The management decides its contribution based on the results of this review. The management aims to keep annual contributions relatively stable at a level such that no plan deficits

(based on valuation performed) will arise.

The following tables summarise the component of the net benefits expense recognised in the statement of profit and loss account and the funded status and amounts recognized in the balance sheet for the

respective plan.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to change in the market scenario.

The Company expects to contribute H13.95 crore to the gratuity fund in the financial year 2023-24 (previous year H9.40 crore).

(xi) Asset - Liability Matching Strategies

The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as part of the policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiency of funds under the policy).The policy, thus, mitigates the liquidity risk.

However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without corresponding increase in the asset).

31 Segment Information

The Company is primarily engaged in one business segment, namely developing, operating and maintaining the ports services, ports related Infrastructure development activities and development of infrastructure at contiguous Special Economic Zone at Mundra, as determined by chief operating decision maker, in accordance with Ind-AS 108 "Operating Segments”.

Considering the inter relationship of various activities of the business, the chief operating decision maker monitors the operating results of its business segment on overall basis. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements.

Terms and conditions of transactions with related parties

(i) Outstanding balances of related parties at the year end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. During the year, the Company has not recorded any impairment of receivables relating to amounts owed by related parties except impairment of H1,558.16 crore against loan and investment of a subsidiary. The closing balance of Loans is net of total impairment of H1,756.82 crore related to current and previous periods. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

(ii) All Rupee loans and foreign currency loans are given on interest bearing within the range of 4 % p.a. to 9 % p.a. except loan to Dholera Infrastructure Private Limited, Dholera Port & Special Economic Zone Limited, Karnavati Aviation Private Limited, Adani Hospitals Mundra Private Limited, Mundra International Airport Private Limited and Abbot Point Operations Pty Limited whereby loan transaction aggregating to H48.74 crore (previous year H99 crore) are interest free.

Notes:

(i) The names of the related parties and nature of the relationships where control exists are disclosed irrespective of whether or not there have been transactions between the related parties. For others, the names and the nature of relationships is disclosed only when the transactions are entered into by the Company with the related parties during the existence of the related party relationship.

(ii) Aggregate of transactions for the year ended and balances thereof with these parties have been given

below.

#Entities over which Key Managerial Personnel and their relatives have control / joint control / significant influence & Entity having significant influence over the Company has control / joint control / significant

influence through voting powers

Notes:

a) The Company has allowed some of its subsidiaries, joint ventures and other group company to avail non fund based facilities out of its credit facilities. The aggregate of such transaction amounts to H766.24 crore (previous year H566.92 crore) is not disclosed in above schedule.

b) Pass through transactions/payable relating to railway freight, water front charges and other payable to third parties have not been considered for the purpose of related party disclosure.

c) The Loans and ICDs of H83 crores (Previous year H208 crore) as at the balance sheet date are guaranteed by Adani Properties Private Limited, a promoter group company and a related party.

d) Adani Gangavaram Port Limited has issued Optionally Convertible Debentures of H4365.89 crore against consideration of composite scheme of arrangement has not been considered for the purpose of related

party disclosure,

e) Pursuant to the amalgamation of Adani Power Maharashtra Limited, Adani Power Rajasthan Limited, Udupi Power Corporation Limited, Raigarh Energy Generation Limited, Raipur Energen Limited and Adani Power (Mundra) Limited with Adani Power Limited, the Company has disclosed the closing balances as on March

31, 2023 of above amalgamated companies as closing balances of Adani Power Limited.

f) Above disclosure excludes payment made to Karaikal Port Private Limited w.rt order passed by the National Company Law Tribunal ("NCLT”) on March 31, 2023 (refer note 4(n)).

g) Transactions/balances with related party having value equal to / exceeding 10% of total transaction/balances of respective category is considered as material and have been disclosed separately.

The company has entered into call option agreement for an equity investment, whereby the company has agreed to grant the buyer an option to purchase the underlying equity investment, the fair value of such call option as at March 31, 2023 is H10.17 crore (previous year H13.76 crore) . The fair value is determined using the Black-Scholes Model which takes into account the exercise price, the term of the option, the spot price, expected price volatility and the risk-free interest rate for the term of the option. The critical inputs for options granted are : (i) Expected price volatility : 38 % (ii) Risk-free interest rate: 5.60 % (iii) Intrinsic value : Nil

c) Financial Instrument measured at Amortised Cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or

settled.

34.3 Financial Risk Management objective and policies

The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables, lease liabilities and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company's operations/projects and to provide guarantees to support its operations and its subsidiaries and joint ventures. The Company's principal financial assets include loans, investment including mutual funds, trade and other receivables, lease receivables and cash and cash equivalents which is derived from its operations. The Company also holds FVTOCI investments and enters into derivative transactions.

In the ordinary course of business, the Company is mainly exposed to risks resulting from exchange rate fluctuation (currency risk), interest rate movements (interest rate risk) collectively referred as Market Risk, Credit Risk, Liquidity Risk and other price risks such as equity price risk. The Company's senior management oversees the management of these risks. It manages its exposure to these risks through derivative financial instruments by hedging transactions. It uses derivative instruments such as Cross Currency Swaps, Full Currency swaps, Interest rate swaps, foreign currency future options and foreign currency forward contract to manage these risks. These derivative instruments reduce the impact of both favourable and unfavourable fluctuations.

The Company's risk management activities are subject to the management, direction and control of Central Treasury Team of the Company under the framework of Risk Management Policy for Currency and Interest rate risk as approved by the Board of Directors of the Company. The Company's central treasury team ensures appropriate financial risk governance framework for the Company through appropriate policies & procedures and financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. It is the Company's policy that no trading in derivatives for speculative purposes may be undertaken.

The decision of whether and when to execute derivative financial instruments along with its tenure can vary from period to period depending on market conditions and the relative costs of the instruments. The tenure is linked to the timing of the underlying exposure, with the connection between the two being regularly monitored. The Company is exposed to losses in the event of non-performance by the counterparties to the derivative

contracts. All derivative contracts are executed with counterparties that, in our judgment, are creditworthy. The outstanding derivatives are reviewed periodically to ensure that there is no inappropriate concentration of outstanding to any particular counterparty.

Further, all currency and interest risk as identified above is measured on a daily basis by monitoring the mark to market (MTM) of open and hedged position. The MTM is derived based on underlying market curves on closing basis of relevant instrument quoted on Bloomberg/Reuters. For period end, the MTM for each derivative instrument outstanding is obtained from respective banks. All gain / loss arising from MTM for open derivative contracts and gain / loss on settlement / cancellation / roll over of derivative contracts is recorded in statement of profit and loss.

a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTOCI investments, short term Investments and derivative financial instruments.

The sensitivity analysis in the following sections relate to the position as at March 31, 2023 and March 31, 2022.

The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign

currencies are all constant as at March 31, 2023 and March 31, 2022. The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations; provisions.

The following assumptions have been made in calculating the sensitivity analysis:

- The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2023 and March 31, 2022.

(i) Interest rate risk

The Company is exposed to changes in market interest rates due to financing, investing and cash management activities. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long-term debt obligations with floating interest rates and period of borrowings. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Company enters into interest rate swap contracts or interest rate future contracts to manage its exposure to changes in the underlying benchmark interest rates.

Interest rate sensitivity

The following paragraph demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company's profit before tax is affected through the impact on floating rate borrowings, as follows:

If interest rates had been 50 basis points higher / lower and all other variables were held constant, the Company's profit for the year ended March 31, 2023 would decrease / increase by H3.23 crore (previous year H10.07 crore). This is mainly attributable to interest rates on variable rate of long term borrowings. The same has been calculated based on risk exposure outstanding as on balance sheet date. The year end balances are not necessarily representative of average debt outstanding during the year.

(ii) Foreign currency risk

Exchange rate movements, particularly the United States Dollar (USD) and Euro (EUR) against Indian Rupee (INR), have an impact on the Company's operating results. The Company manages its foreign currency risk by entering into currency swap for converting other foreign currency loan into INR. The Company also enters into various foreign exchange contracts to mitigate the risk arising out of foreign exchange rate movement on foreign currency borrowings or creditors. Further, to hedge

foreign currency future transactions in respect of which firm commitment are made or which are highly probable forecast transactions (for instance, foreign exchange denominated income) the Company has entered into foreign currency forward contracts as per the policy of the Company.

The Company is mainly exposed to changes in USD, EURO, AUD, SGD and OMR. The below table demonstrates the sensitivity to a 1% increase or decrease in the respective foreign currency rates against INR, with all other variables held constant. The sensitivity analysis is prepared on the net unhedged exposure of the Company as at the reporting date. 1% represents management's assessment

of reasonably possible change in foreign exchange rate.

(iii) Equity price risk

The Company's non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the equity price risk through diversification and by placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Company's senior management on a regular basis. The Company's Board

of Directors reviews and approves all equity investment decisions.

The Company has given corporate guarantees and pledged part of its investment in equity in order to fulfil the collateral requirements of the subsidiaries and joint ventures companies. The counterparties have an obligation to return the guarantees/ securities to the Company. There are no other significant terms and conditions associated with the use of collateral.

b) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables and other financial assets) and from its financing activities, including loans to others, deposits with banks, financial institutions & others, foreign exchange transactions and other financial assets.

Customer credit risk is managed by the Company's established policy, procedures and control relating to customer credit risk management, Credit quality of a customer is assessed based on an extensive evaluation and individual credit limits are defined in accordance with this assessment.

An impairment analysis is performed at each reporting date on an individual basis for major clients, In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on exchange losses historical data.

Credit risk from balances with banks, financial institutions and other counter parties is managed by the Company's treasury department in accordance with the Company's policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Management of the Company on an annual basis, and may be updated throughout the year subject to approval of the Company's Finance Committee. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments. The Company further mitigate credit risk of counter parties by obtaining adequate securities including undertaking from creditable parties.

The Company is exposed to market conditions and counter party credit risk on Loans and ICDs extended from time to time based on limits set by the Finance Committee of the Board of Directors having regard to various factors including net-worth of the counterparties. As part of credit risk policy, guarantees are obtained to secure repayment of these loans and ICDs and interest thereon. These guarantees are evaluated for enforceability under the prevailing laws by the Management including assessment by external legal expert, and by assessing financial ability of the guarantor

Corporate Guarantees given to banks and financial institutions against credit facilities availed by the subsidiaries and joint ventures H10,534.05 crore (previous year H5,221.10 crore)

Concentrations of Credit risk form part of Credit risk

Considering that the Company operates the port services and provide related infrastructure services, the Company is significantly dependent on such customers located at Mundra. Out of total income from port operations, the Company earns 49 % revenue (previous year 49 %) from such customers, and with some of these customers, the Company has long term cargo contracts. As at March 31, 2023, receivables from such customer constitute 40% (previous year 45%) of total trade receivables. A loss of these customer could adversely affect the operating result or cash flow of the Company.

c) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity

risk may result from an inability to sell a financial asset quickly at close to its fair value.

The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Company's exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.

Notes:

i) The table has been drawn up based on the undiscounted contractual maturities of the financial liabilities including interest that will be paid on those liabilities upto the maturity of the instruments, ignoring the refinancing options available with the Company. The amounts included above for variable interest rate instruments for non derivative liabilities is subject to change if changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period.

ii) In above figures, foreign currency liabilities are converted to INR at exchange rate prevailing on reporting date.

34.4 Capital management

For the purposes of the company's capital management, capital includes issued capital and all other equity.

The primary objective of the company's capital management is to maximize shareholder value. The Company

manages its capital structure and makes adjustments in the light of changes in economic environment and the

requirements of the financial covenants.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interestbearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended

March 31, 2023 and March 31, 2022.

35 Information required to be furnished as per Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) and Schedule III of the Companies Act, 2013 for the year ended March 31, 2023. This information has been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by auditors.

36 Capital Commitments and Other Commitments

(i) Capital Commitments

Estimated amount of contract [net of security deposits amounting to H713.63 crore (previous year H1,210.63 crore) included in note 7 and Capital advances] remaining to be executed on capital account and not provided for H4,909.62 crore (previous year H4,068.58 crore) pertains to various projects to be executed

during the next 5 years.

(ii) Other Commitments

a) The port projects of subsidiary company viz. The Dhamra Port Company Limited ("DPCL') and joint venture Adani International Container Terminal Private Limited ("AICTPL') have been funded through various credit facility agreements with banks. Against the said facilities availed by the aforesaid entities from the banks, the Company has pledged its shareholding in the subsidiary / joint venture companies and executed Non Disposal Undertaking, the details of which is tabulated below

40 The Company had entered into preliminary agreement dated September 30, 2014 with a party for development and maintenance of Liquefied Natural Gas ("LNG”) terminal infrastructure facilities at Mundra

("the LNG Project”),

During the year ended March 31, 2020, due to the disputes between the Company and Customer with respect to construction, operation and maintenance of the LNG Project, part of the cost has been capitalised in Property, Plant and Equipment, Interim Settlement and Arbitration Agreement dated December 24, 2019 was executed. Pursuant thereto, H666 crore has been received and arbitration has been invoked by the Company. On July 08, 2020, the Company has filed its claim before Arbitral Tribunal, On October 07, 2020, the customer has also filed counter claim before Arbitral Tribunal. Pending further developments, no adjustments has been made till March 31, 2023.

41 On September 23, 2021 DGFT issued a notification, which restricts the Company's eligibility for SEIS benefits and also restricts the benefit up to H5 Crore per entity for FY 2019-20, pursuant to which the SEIS receivable amounting to H120.60 crore pertaining to FY 2019-20 has been written off during the previous year and is shown as an exceptional item. However, the Company has contested the legality and retrospective application of the said notification.

42 a) Janu ary 27, 2022 National Company Law Tribunal ("NCLT”) have approved the Composite Scheme

of Arrangement between the Company and Brahmi Tracks Management Services Private Limited

("Brahmi”) and Adani Tracks Management Services Private Limited ("Adani Tracks”) and Sarguja Rail Corridor Private Limited ("Sarguja”) and their respective shareholders and creditors (the 'Scheme') under Section 230 to 232 and other applicable provisions of the Companies Act, 2013 and the Rules framed

thereunder ("the Act”).

Consequent to above, Brahmi got amalgamated with the company w.e.f. appointed date April 1, 2021. Further, Mundra rail business ("Divestment Business undertaking”) is transferred to Sarguja on Slump sale basis at a consideration of H188.65 crore with appointed date April 2, 2021. Accordingly, the company has derecognized the carrying value of assets and liabilities of the divestment business undertaking and recognized the difference between the carrying value and consideration in other equity. Further, transaction costs pertaining to such scheme has been charged off to Statement of Profit and Loss on the same date.

Pursuant to the Scheme, the Company has allotted 7,06,21,469 equity shares having face value of H2 each at an issue price of H675.18 per share to the erstwhile promoters of Brahmi Track Management

Services Private Limited.

Sarguja Rail Corridor Private Limited renamed as Adani Tracks Management Services Limited

b) The Ahmedabad Bench and Hyderabad Bench of the National Company Law Tribunal ("NCLT”), through their orders dated September 21, 2022 and October 10, 2022 respectively, have approved the Composite Scheme of Arrangement between the Company, Gangavaram Port Limited ("GPL'), Adani Gangavaram Port Private Limited ("AGPPL' - a wholly owned subsidiary of the Company) and their respective shareholders and creditors (the 'Scheme').

Pursuant to the Scheme, Company had issued 159 fully paid-up equity shares of APSEZ for 1,000 fully paid-up equity shares held by such member in GPL ("Share Exchange Ratio”). Accordingly, Company has allotted 4,77,65,715 equity shares having face value of H2 each at an issue price of H754.78 per share to the erstwhile promoters of Gangavaram Port Limited on October 19, 2022. However the same have been considered while calculating the Basic and Diluted Earnings per Share for the previous year.

W.e.f. December 30, 2022, Adani Gangavaram Port Private Limited ("AGPPL') has been converted into Public Limited Company and consequently the name of the AGPPL has been changed to Adani

Gangavaram Port Limited ("AGPL').

(a) The determination of the fair value is based on discounted cash flow method. Key assumptions on which the management has based fair valuation includes estimated long-term growth rates, weighted average cost of capital and estimated operating margin. The Cash flow projections take into account past experience and represent the management's best estimate about future developments.

(b) Pursuant to the scheme, GPL got merged with the Company w.e.f April 1,2021. Thereafter, Divestment Business Undertaking as defined in Scheme got transferred to AGPPL with appointed date i.e April 2, 2021 and the same has been accounted as transaction between commonly controlled entities under appendix C of Ind AS 103. Consequently, the Company has restated the reported financial

statement of the previous year.

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

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

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

44 Adani Vizhinjam Port Private Limited ("AVPPL'), a wholly owned subsidiary of the Company was awarded Concession Agreement ("CA”) dated August 17, 2015 by Government of Kerala for development of Vizhinjam International Deepwater Multipurpose Seaport ("Project”). In terms of the CA, the scheduled Commercial Operation Date ("COD”) of the Project was December 03, 2019 extendable to August 30, 2020 with certain conditions. As at reporting date, the Project development is still in progress although COD is past due in terms of CA. In respect of delay in COD, AVPPL has made several representations to Vizhinjam International Sea Port Limited ("VISL', the Implementing Agency on behalf of the Government) and Department of Ports, Government of Kerala in respect to difficulties faced by AVPPL including reasons attributable to the government authorities and Force Majeure events such as Ockhi Cyclone, High Waves, National Green Tribunal Order and COVID 19 pandemic etc. which led to delay in development of the project and AVPPL not achieving COD.

Considering the above reasons and authority's rights to terminate the CA on completion of extendable COD, AVPPL issued a Notice of Disputes to Secretary and Principle Secretary of Ports, Government of Kerala under Clause 45.1 of the CA on July 26, 2020 followed by a Notice of Conciliation on August 04, 2020 under Clause 45.2 of the CA. On November 07, 2020, AVPPL issued a Notice of Arbitration in terms of Clause 45.3 of the CA which led to commencement of the arbitration proceedings through appointment of the nominee arbitrator on behalf of the Authorities and presiding arbitrator in the matter w.e.f. February 05, 2021 and February 25, 2021 respectively.

As at March 31, 2023, resolution of disputes with the VISL/Government authorities and the arbitration proceedings are still in progress. The Government Authorities continue to have right to take certain adverse action including termination of the Concession Agreement and levying liquidated damages at a rate of 0.1% of the amount of performance security for each day of delay in project completion in terms of the CA.

The management represents that the project development is in progress with revised timelines which has to be agreed with the authorities. AVPPL's management represents that it is committed to develop the project and has tied up additional equity and debt funds to meet any additional costs on account of delay net of any arbitration receipts and also received extension in validity of the environmental clearance from the

Government for completion of the Project. Based on the above developments and on the basis of favorable legal opinion from the external legal counsel in respect of likely outcome of the arbitration proceedings, the management believes it is not likely to have significant financial impact on account of the disputes which are required to be considered for the purpose of these financial statements.

Pending settlement of arbitration dispute with the Government of Kerala and project development being still under progress, AVPPL will revise the Project Cost including revision in EDC cost on account of various force majeure events which delayed the achievement of COD as per the terms of the CA. AVPPL has also applied for Viability Gap Funding ("VGF” or “ Equity Support Grant”) claim of H1,227 Crore from the authority, as per the Article 25 of the CA and has received the final approval from DEA, Government of India on October 10, 2022.

AVPPL is expecting the signing of the Tripartite Agreement as per the VGF guidelines in the coming months which is a prerequisite for disbursement of VGF. Concessionaire has submitted the claim for completion of 30% of Funded works amounting to H346.75 crore which has been approved by Independent Engineer and Authority on February 09, 2023 and AVPPL is in receipt of part payment of H100 crore as on March 31, 2023

and the balance amount is expected to be received in the coming months.

Considering above, as at March 31, 2023, AVPPL has assessed the value in use of the Project based on the cost incurred till reporting date and additional cost including revision in EDC Cost which shall be incurred for completion of project. As per the assessment made by the management, the value in use of the Project continues to be positive with expected favorable settlement with the authorities and considering significant transshipment cargo business opportunity due to strategic location of the Project.

46 Du ring the quarter ended March 31, 2023, a short seller report was published in which certain allegations were made involving Adani Group Companies, including the Company and its subsidiaries, A writ petition was filed in the matter with the Hon'ble Supreme Court ("SC”), and during hearing the Securities and Exchange Board of India ("SEBI”) has represented to the SC that it is investigating the allegations made in the short seller report for any violations of the various SEBI Regulations. The SC had constituted an expert committee for assessment of the extant regulatory framework and share recommendations. The SC had constituted an expert committee for assessment of the extant of regulatory framework including volatility assessment on Adani stocks, investigate whether there have been contraventions / regulatory failures on minimum shareholding and related party transactions pertaining to Adani group.

The expert committee, post the reporting date, issued its report on the given remit, wherein no regulatory failures are observed, while SEBI continues its investigations.

Separately, to uphold the principles of good governance, Adani Group has undertaken review of transactions (including those for the Company and its subsidiaries) with parties referred in the short seller's report including relationships amongst other matters and obtained opinions from independent law firms. These opinions confirm that the Company and its subsidiaries are in compliance with the requirements of applicable laws and regulations. Considering the matter is sub-judice at SC, no additional action is considered appropriate and pending outcome of the SEBI investigations as mentioned above, financial statement do not carry any adjustments.

47 Assets classified as held for sale

In line with guidance from the risk management committee, subsequent to the reporting date, the company divested its investment in container terminal under construction in Myanmar (held through an overseas subsidiary) to Solar Energy Limited, an unrelated party. Given the continued US Sanctions in Myanmar and urgency to divest the asset, the company re-evaluated the asset value on 'as is where is' basis through two independent valuers and the sale consideration was renegotiated between the parties. Company explored other potential buyers which did not fructify. Basis the sale agreement, the company has recorded an impairment of H1,558.16 crore factoring net realizable value less cost to complete and balance of H194.76 crore has been classified as held for sale.

48 The company has been working with the contractor for its capital projects over a decade. The payment terms have been negotiated to secure contractor capacity, reduced cost / overruns and improved operational efficiency of the projects. The contractor has successfully delivered the projects without defaults and with highest operating credentials. The net balance outstanding on such contracts as on reporting date stood at H2,457.05 crore, which includes purchase contracts worth H1,501.50 crore and security deposits of H713.63 crore carrying interest @8% p.a. and other receivable of H241.92 crore. The security deposits approximate to about 20% of the cost of projects under execution. Of the security deposits, deposits for which projects are in progress amount H460 crore and the balance are for projects under engineering and design stage. The security deposits are refundable either on completion or termination of the project against which the said security deposit was given and in every instance the deposits were returned when due along with interest. The company has also obtained an independent opinion from a reputed law firm that the contractor is an unrelated party.

49 The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and postemployment benefits has received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the effective date of the Code is yet to be notified and final rules for quantifying the financial impact are also yet to be issued. In view of this, the Company will assess the impact of the Code when relevant provisions are notified and will record related impact, if any, in the period the Code becomes effective.

50 Statutory Information

(i) The Company does not have any benami property, where any proceeding has been initiated or pending

against the Company for holding any benami property.

52 Event occurred after the Balance Sheet Date

i) On May 04, 2023, the Company has entered into Binding share purchase agreement with Solar Energy Limited for divestment of its investment in container terminal under construction in Myanmar (held through an overseas subsidiary)(refer note 47).

ii) Pursuant to approval of the Finance Committee of the Board of Directors of the Company in its meeting held on April 22, 2023, the Company has completed the early settlement of Notes tendered pursuant to the Tender Offer to purchase for cash up to US$130 million in aggregate principal amount of the outstanding 3.375% Senior Notes due in 2024 (the "Notes”) on May 10, 2023. Subsequently, the Company has cancelled US$130 million of the outstanding Notes.

iii) The Board of Directors of the Company has recommended Equity dividend of H5 per equity share (previous year H5 per equity share).