1. Discounting rate used for the purpose of computing right to use asset is ranging from 8% to 10.75%.

2. Rental amount per annum is ' 1.51 Crores (previous year ' 1.46 Crores), which also carries a clause for extension of agreement based on mutual understanding between Lessor and Lessee.

3. The lease period is from 3 to 5 years over which the right to use asset is depreciated on a straight line basis.

4. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any major covenants other than the security deposit in the leased assets that are held by the lessor.

5. Expense relating to short term Leases (included in other expenses - Refer Note 31 ) amounting to ' 2.47 Crores (previous year ' 2.55 Crores ).

6. The Company did not enter into lease contracts that contain variable lease options.

7. The total cash outflow for the lease for the year ended 31 March 2024 was ' 1.51 Crores (previous year ' 1.46 Crores).

8. Interest expense (included in finance cost- Refer Note 29) ' 0.41 Crores (previous year ' 0.22 Crores) and depreciation expense (included in depreciation- Refer Note 30) ' 1.25 Crores (previous year ' 1.28 Crores).

Note 5.1: Fair value of the Company's investment property

The fair value of the property is ' 3.26 Crores, as per valuation performed by M/s Sunsen Value Solution, an accredited independent valuer during the current year. M/s Sunsen Value Solution are specialist in valuing these types of Investment properties.

Fair value was derived using the composite rate method which is the rate per unit area of the building in the entire building along with proportionate undivided share of Land. In estimating the fair value of the property, the current use is considered as the highest and best use.

1. The investments made by the Company are in compliance with Section 180 and 186 with respect to layers of investment permitted under the Companies Act, 2013

2. 90,86,502 (Previous year 90,86,502) equity shares held by the company in Greenam Energy Private Limited are pledged in favour of Indian Renewable Energy Development Agency Lmited, to secure the term loan of ' 95 Crores availed by Greenam to meet its capital expenditure for its floating solar power project. The Company has also given undertaking for non disposal of said shares during the tenure of the loan.

1. The investments made by the Company are in compliance with Section 180 and 186 with respect to layers of investment permitted under the Companies Act, 2013

The Company's plant at Tuticorin was affected by floods in the month of December 2023 which has resulted in loss of Inventory of raw materials, work in progress, finished goods, stores & spares and Plant & Machinery. The Company recommenced its operations on 18 March 2024. The Company has recognised insurance claim towards repairs and replacement of various assets amounting to ' 24.97 Crores, Shutdown & Start-up expenses amounting to ' 25.00 Crores, Inventory of raw materials, work in process, finished goods and stores & spares amounting to ' 27.75 Crores and other administrative expenses amounting to ' 1.99 Crores. Besides the Company had also lodged claim for loss of profits which has not been recognised, considering the claims are yet to be approved by the Insurance company. The Company has received an interim amount of ' 10 Crores. (Refer Note No. 21).

1. These are carried at amortised cost. The Company's trade receivable do not carry a significant financial element.

2. For details of assets given as security against borrowings - Refer Note 17 ( C )

3. There are no trade or other receivable which are either due from directors or other officers of the Company either

severally or jointly with any other person nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.

4. Trade receivables are non-interest bearing and credit period generally ranges between 7 to 30 days.

5. There are no disputed trade receivables.

15(iv): Equity shares include :

1,67,91,800 equity shares were issued against the Global Depository Receipts (GDRs) and is held by The Bank of New York, Mellon, as depository for the GDRs.

15 (v) No class of shares have been issued as bonus shares during the period of five years immediately preceeding the current year end.

15 (vi) No class of shares have been bought back by the Company during the period of five years immediately preceeding the current year end.

15 (vii) Terms/rights attached to Equity Shares:

The Company has only one class of equity shares having a par value of ' 10 per share. All these shares have the same rights and preferences with respect to payment of dividend, repayment of capital and voting.

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.

Capital Reserve and Statutory Reserve

Capital Reserve of ' 0.97 Crores and Statutory Reserve of ' 0.41 Crores represents reserves transferred to the Company on Amagamation of SPIC Holdings and Investments Ltd (SHIL) with the Company during 2006-07.

Capital Redemption Reserve

Capital redemption reserve has been created pursuant to the requirements of the Act under which the Company is required to transfer certain amounts on redemption of the preference shares. The Company had redeemed the underlying preference shares in the earlier years. The capital redemption reserve can be utilised for issue of bonus shares.

Securities Premium Account

Securities premium reserve represents the amount received in excess of the face value of the equity shares. The utilisation of the securities premium reserve is governed by the Section 52 of the Act.

Note 32 Plant Operation

(i) During the year the Company achieved a production of 522,535 MT (previous year 759,199 MT).

(ii) The Company has become a gas-based Urea manufacturing unit since 13th March 2021 and is therefore eligible for higher fiscal incentives in the form of subsidy income due to higher energy norms from the above said date for the next five-year period. Since the Company is not connected to the National Gas Grid, it will be kept out of "Gas Pooling Mechanism" as per the Office Memorandum received from Ministry of Chemical & Fertilizers dated 13th August 2021. The Company has been included in the Gas Pool with effect from 1st May 2024 considering the Company has fully moved to Gas based manufacturing.

(iii) Subsidy for the period 1 April 2023 to 31 March 2024 of ' 1442.99 Crores has been accounted based on the provisional Retention Price (RP) computed in line with the Government's policy indicated in the notification dated 17 June 2015, as the final retention price has not been announced by the Department of Fertilizers. The necessary adjustments, if any, will be made when the final retention price is notified by the Department of Fertilizers.

(iv) Exceptional items for the year ended 31 March 2024 represents expenses incurred by the Company during the period of Shutdown as a result of flood during December 2023, comprising of shut down and restart expenses, salaries and other expenses.

Note 33 Capital Commitments

Estimated amounts of contracts remaining to be executed on capital account and not provided for (net of advances) ' 25.45

Crores (Previous year ' 11.11 Crores).

Note 34 Contingent Liabilities

(a) Claims not acknowledged as debts:

(i) The District Collector, Tuticorin vide his letter dated, 21 August 2009 had demanded ' 168.74 Crore (Previous year ' 168.74 Crore) towards lease rent for the utilization of 415.19 acres of sand quarry poramboke lands by the Company for its effluent treatment and storage of Gypsum for the period from 1975 to 2008. While raising this demand, the District Collector had ignored the proposal submitted by the Company during 1975 to the State Government seeking assignment of the said land which is still pending. The Company filed a writ petition challenging the demand before the Hon'ble Madras High Court and the court granted interim stay vide its order dated 21 April 2010 on further proceedings. During November 2010 the District Collector, Tuticorin filed a counter before Hon'ble Madras High Court praying for the vacation of interim stay. In September 2023, Single bench at Madras High Court had directed the Company vide their order dated 29 September 2023, to pay '168.74 Crores as lease rent to the Tamil Nadu government within 2 weeks from the date of the order. The Division bench has in its interim order stayed the demand raised by the Single judge till next date on the condition that Company pays ' 50 crores, which the Company has paid during the year. Refer Note 7(A).

(ii) Tamil Nadu Water Supply and Drainage Board (TWAD) has claimed payments for the period during which the Nitrogenous plants were not in operation, based on 50% allotted quantity of water. The Company along with other beneficiaries has been enjoying this facility since inception of the 20 MGD Scheme for the last 48 years. Water Charges were paid to TWAD based on actual receipt by individual industries. The claims include interest

made by TWAD for ' 53.86 Crore (Previous year ' 46.85 Crore) is not acknowledged as debt, as this differential value from April 2009 to March 2024 is not supported by any Government Order and the other beneficiaries are objecting to such claims of TWAD.

(iii) The Company has received a demand from VOC Port Trust for an increase in rental charges from 1 July 2007 onwards. The amount payable as on 31.03.2024 is ' 15.18 Crores (from 01.07.2007 to 31.03.2024) (Previous year ' 14.05 Crores). The Company obtained an injunction from the Madurai Bench of the Hon'ble Madras High Court against the claim made by the VOCPT and the stay has been granted till 10 June 2015. On 23.07.2015, Madurai Bench of the Hon'ble Madras High Court extended the stay until further orders.

(b) No provision has been considered necessary by the Management for the following disputed Excise duty, Service tax, Sales tax and Electricity tax demands which are under various stages of appeal proceedings. The Company has been advised that there are reasonable chances of successful outcome of the appeals and hence no provision is considered necessary for these demands.

B. Defined benefit plans

Gratuity:

In respect of Gratuity plan, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out on 31 March 2024 by the Actuary. The present value of the defined benefit obligation and the related current service cost and past service cost were measured using the projected unit cost method. The following table sets forth the status of the gratuity plan of the Company and the amount recognized in the balance sheet and statement of profit and loss. The company provides the gratuity benefit through annual contributions to a fund managed by the Life Insurance Corporation of India (LIC).

There is no provision for tax under normal computation in view of the unabsorbed depreciation relating to earlier years available for set off. Provision for Minimum Alternate Tax (MAT) under section 115-JB of the Income Tax Act, 1961 has been made for the year ended 31 March 2024 for an amount of ' 25.07 crores. Deferred tax charge /(credit) is net of MAT credit entitlement asset of ' 25.07 crores for the year ended 31 March 2024 based on assessment ( including application of sensitivity analysis on key inputs) of future profitability where it is reasonably certain that the same would be utilised within the time period in keeping with the provisions of Income tax Act.

Note 37 Segment Reporting

The Company's Chief Operating Decision maker (CODm) reviews business operations as a single segment i.e. manufacture and sale of fertilisers, accordingly there are no other reportable business segments in accordance with the Ind AS 108, "Operating segments"

Note 39 Financial Instruments 39.1 Capital Management

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable to the equity shareholders. The primary objective of the Company's capital management is to ensure that it maintains a strong credit rating and capital ratios in order to support its business and maximise shareholder value.

The Company monitors capital using a gearing ratio, which is net debt divided by total capital. The Company includes within net debt, all non-current and current borrowings reduced by cash and cash equivalents.

The following table summarises the capital of the Company:

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 interest-bearing loans and borrowing in the current year. No changes were made in the objectives, policies or processes for managing capital during the year ended 31 March 2024 and 31 March 2023.

39.3 Financial Risk and Management Objectives

The Company's activities expose it to a variety of financial risks, credit risks, liquidity risks and market risks.

The Company's board of directors has overall responsibility for the establishment and oversight of the risk management framework.

The risk management policies are established to identify and analyse the risks faced by the company, to set appropriate risk limits and controls and to monitor risks and adhere to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and Company's activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control enviornment in which all employees understand their roles and obligations.

1. 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 from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Trade receivables and subsidy receivable

The Company receivables can be classified into two categories, one is from the customers into the market and second one is from the Government in the form of subsidy. As far as Government portion of receivables are concerned, credit risk is nil. For market receivables from the customers, the Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings for extension of credit to customers. The Company monitors the payment track record of the customers. Outstanding customer receivables are regularly monitored. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets. The Company has also taken security deposits from its customers, which mitigate the credit risk to some extent.

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

2. Liquidity Risks

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. The Company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company's reputation.

3. Market Risk

Market risk is this risk that changes in market prices, such as foreign exchange rates and Interest rates will affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimising the returns.

4. Foreign Currency Risks

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which transactions are denominated and the functional currency of the Company. The functional currency of the Company is Indian ' (INR). The currency in which these transactions are primarily denominated is US Dollars (USD).

b. Foreign currency sensitivity analysis

The Company is mainly exposed to fluctuations in US Dollar. The following table details the Company's sensitivity to a ' 2 increase and decrease against the US Dollar. ' 2 is the sensitivity used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only net outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a ' 2 change in foreign currency rates. A positive number below indicates an increase in profit or equity where the Rupee strengthens by ' 2 against the US Dollar. For a ' 2 weakening against the US Dollar, there would be a comparable impact on the profit or equity.

5. Interest Rate Risks

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's outstanding debt in local currency is on fixed rate basis and hence not subject to interest rate risk.

6. Commodity Price Risk

The Company's operating activities require the ongoing purchase of natural gas and reliquified natural gas. Prices are subject to price fluctuations on account of the change in the demand supply pattern. The Company is not affected by the price volatility of the raw materials as government finalise the subsidy rates payable to the fertilizer industry based on actual cost of production.

Registration of charges or satisfaction with Registrar of Companies

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

Note 43

Wilful Defaulter

The Company has not been declared as a wilful defaulter by Reserve Bank of India or any Banks or Financial Institutions or any other Lender.

Note 44

Compliance with number of layers of Companies

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

Note 45

a) The Company has not advanced or loaned or invested funds during the reporting period to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding whether recorded in writing or otherwise that the Intermediary shall:

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

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

b) The Company has not received any fund during the reporting period 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:

(i) 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

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

Note 46

Undisclosed income

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

Note 47

Details of Crypto Currency or Virtual Currency

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

Note 48

Corporate Social Responsibility

In view of absence of Profit as per the computation of Section 198 of the Companies Act 2013, Company is not required to spend towards CSR Activity as per Section 135 of Companies Act, 2013

Note 49

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

Note 50

The Board of Directors has recommended a dividend of ' 1.50 (15%) per share on 20,36,40,336 equity shares of ' 10/- each for the financial year 2023-24, subject to the approval of Members at the ensuing Annual General Meeting.